Learning Goal: I’m working on a business writing question and need an explanation and answer to help me learn.
Prompt: Visit The Motley Fool’s web page on cash flow–based valuation (com/how-to-invest/how-to-value-stocks-cash-flow-based-valuations.aspx (Links to an external site.)).
Requirements: Answer the following questions.
How does the Motley Fool define cash flow? What is the reasoning for this definition?
Per the Fool’s instruction, why do analysts focus on earnings before interest and taxes (EBIT)?
Visit other links at this website that interest you, such as “How to Read a Balance Sheet,” or find out what the “Fool’s Ratio” is. Write a half-page report on what you find.
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