6. Which interest coverage ratio, earnings before interest, taxes, depreciation, and amortization (EBITDA) to interest or EBITA

Question:

6. Which interest coverage ratio, earnings before interest, taxes, depreciation, and amortization (EBITDA) to interest or EBITA to interest, will lead to a higher number?When is the EBITDAinterest coverage ratio more appropriate than the EBITA ratio? When is the EBITA interest coverage ratio more appropriate than the EBITDA ratio?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Valuation Measuring And Managing The Value Of Companies University Edition

ISBN: 978-1118873731

6th Edition

Authors: Mckinsey & Company Inc. ,Tim Koller ,Marc Goedhart ,David Wessels

Question Posted: