Using the free cash flow method of valuation an analyst


 Using the free cash flow method of valuation, an analyst determines the value of Company A's stock to be $12 and the value of Company B's stock to be $15. Other things be held constant, what could account for the higher valuation for Company B?

Company B's tax rate is higher than Company A's tax rate.

Company B's sales growth rate is lower than Company A's sales growth rate.

Company B's assets-to-sales ratio is lower than Company A's assets-to-sales ratio.

Company B's operating profit margin is lower than Company A's operating profit margin.

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Financial Management: Using the free cash flow method of valuation an analyst
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