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Basic Question 3 of 3
Which of the following ratios most likely indicates that a company has earnings of high quality?
A. Operating cash flow/Net income > 1.
B. Investing cash flow/Net income > 1.
C. Financing cash flow/Net income > 1.
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
calculate and interpret free cash flow to the firm, free cash flow to equity, and performance and coverage cash flow ratios
CFA® 2025 Level I Curriculum, Volume 2, Module 5.