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Your stockbroker explains that the price to EBITDA multiple is a good valuation multiple. This is because the denominator is independent of the capital structure

Your stockbroker explains that the price to EBITDA multiple is a good valuation multiple. This is because the denominator is independent of the capital structure of the company. This allows you to compare the multiple across firms with different capital structures. Do you agree that the price to EBITDA multiple is a good multiple? Give two reasons.

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