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The difference between sales and EBITDA can be classified as cash operating costs. Assume that half of these costs are fixed and a half increase
The difference between sales and EBITDA can be classified as cash operating costs. Assume that half of these costs are fixed and a half increase in direct proportion to sales if you forecast sales growth of 5% in the next forecast year. - What is your expected change in EBITDA next year? Explain. - What is your expected change in Net Income next year assuming the firm raises debt from banks and is required to repay the principal and interest on an annual basis? Explain
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