Professional analysts need information on a company's future earnings and cash flow to evaluate audit vulnerabilities,to assess debt repayment prospects and to
A)certify good values in the stock market.
B)indemnify creditors against losses.
C)certify that no fraud exists in the company.
D)value its equity securities.

Question

Quizplus · Accepted Answer

Professional analysts evaluate a company's future earnings and cash flow to assess its financial health and prospects, which is crucial for valuing its equity securities. This involves analyzing the company's potential for growth, profitability, and its ability to meet financial obligations, which directly impacts the valuation of its stocks or equity securities in the market.

Professional Analysts Need Information on a Company's Future Earnings and Cash