Question
Some analysts prefer to use earnings before interest, taxes, depreciation, and amortization (EBITDA) rather than earnings per share to value a company's performance. Which of
Some analysts prefer to use earnings before interest, taxes, depreciation, and amortization (EBITDA) rather than earnings per share to value a company's performance. Which of the following would support this preference?
Group of answer choices
a. EBITDA is a more volatile number than earnings per share.
b. EBITDA is more sensitive to the gearing of the company.
c. EBITDA does not take into account the cost of using fixed assets.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Stocks Bonds And The Investment Horizon
Authors: Haim Levy
1st Edition
9811250146, 978-9811250149
