单选题 An argument against using the price to cash flow (P/CF) valuation approach is that:

A、 cash flows are not as easy to manipulate or distort as EPS and book value.
B、 non-cash revenue and net changes in working capital are ignored when using earnings per share (EPS) plus non-cash charges as an estimate.
C、 price to cash flow ratios are not as volatile as price-to-earnings (P/E) multiples.

【正确答案】 B

【答案解析】Items affecting actual cash flow from operations are ignored when the EPS plus non-cash charges estimate is used. For example, non-cash revenue and net changes in working capital are ignored. The other responses are arguments in favor of using the price to cash flow approach.