FIN 3310 Lecture Notes - Lecture 1: The Wall Street Journal, Horse Length, Cash Flow
13 Feb 2017
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Charles h. mulford, ph. d. , cpa and eugene e. comiskey, ph. d. , cpa. It"s a lot harder to manipulate cash flow from operations than it is earnings per share. 1. Cash is fact and accounting profit is opinion. 2. Unlike some items that can be clouded with financial reporting issues, cash is real, finite and measurable. Dividends paid in cash are tangible and are therefore impossible to fake. 4. In an environment where reported earnings are viewed with some degree of skepticism, cash dividends will provide a very strong signal to investors of true financial strength and of the credibility of earnings reports. 5. 1 c. winokur monk, evergreen manager focuses on cash flow, the wall street journal, march 19, 2002, p. c19. 2 l. wei, this manager isn"t rushing to buy, the wall street journal, august 28, 2002, p. d11. 3 d. harrison, business valuation made simple, strategic finance, february 2002, p. 46.
