Financial managers are more concerned with a firm’s __________ than a firm’s earnings per share when evaluating a potential acquisition.

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Answer:

The correct answer to the following question is cash flows.

Explanation:

During the time of the acquisition , a financial manager would be more concerned with cash flows of the company ,rather than the earning expenses.

Cash flow statements are those type of financial statements which tells about the amount cash flow incoming and out going in the company. The reason why financial managers are more concerned about it is because these cash flow statements would tell manager what is the cash position of the company, how well it is managing its cash, is it able to generate cash on regular basis and is it able to pay its debt obligations and other operating expenses.

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