{br} STUCK with your assignment? {br} When is it due? {br} Get FREE assistance. Page Title: {title}{br} Page URL: {url}
UK: +44 748 007-0908, USA: +1 917 810-5386 [email protected]




1. What are free cash flows?

2. Explain the difference between a company’s operating cash flow under GAAP and its free cash flow.

3. Briefly describe the key features of the free cash flow approach to valuation.

E7-5 Why P/E ratios vary (LO 7-4)

The price/earnings ratios of four companies from the same industry are:


Company P/E Ratio

Ingles Markets  7.9

Kroger  6.6

Sprouts Farmers Market 18.3

Weis Markets 17.4

Source: Based on closing stock prices on March 17, 2019, and trailing-twelve-months earnings per share, both from Yahoo Finance.


What factors might explain the difference in the P/E ratios of these companies?

E7-7 Earnings quality (LO 7-5)


1. Define the term quality of earnings.

2. List the techniques that management can use to improve a company’s reported earnings performance in the short run.

Give examples of low-quality earnings com

This question has been answered.

Get Answer
WeCreativez WhatsApp Support
Our customer support team is here to answer your questions. Ask us anything!
👋 Hi, how can I help?