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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 just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
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® 2024 Level I Curriculum, Volume 2, Module 5.