Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The EV / EBITDA multiple is useful because: Group of answer choices More firms are likely to have negative earnings than negative EBITDA It is

The EV/EBITDA multiple is useful because:
Group of answer choices
More firms are likely to have negative earnings than negative EBITDA
It is more appropriate when comparing firms exhibiting different levels of leverage than for other measures of earnings since the numerator represents the total value of the firm and the denominator measures earnings before interest
All of These
It is a good method to value the deals with large amount of debt financing

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Markets And Institutions

Authors: Anthony Saunders, Marcia Cornett

4th Edition

0077262379, 978-0077262372

More Books

Students also viewed these Finance questions

Question

What are the factors that influence make or buy decisions ?

Answered: 1 week ago

Question

Define plant location.

Answered: 1 week ago

Question

Define plant location.

Answered: 1 week ago