In its previous annual report, Diamond Company had net income of $1,400 million, and non-cash charges of $300 million. There were 110 million shares outstanding. Diamond's share price was $40 per share at the beginning of the next accounting cycle. An analyst is calculating the Diamond's price-to-cash flow (P/CF) multiple and her firm defines cash flow as defined as being earnings plus non-cash charges. The P/CF multiple she will calculate is closest to?

Answer rating: 100% (QA)

Alright lets calculate the Diamond Companys pricetocash flow PCF multiple based on the i... View the full answer