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Question
The company’s ability to meet short-term obligations is measured with ratios that incorporate three measures of earnings. Which of the following is NOT one of those measures of earnings?
a) Earnings before interest, taxes, and amortization (EBITA).
b) Earnings before interest, taxes, depreciation, and amortization (EBITDA).
c) Earnings before interest, taxes, amortization, and preferred dividends (EBITAD).
d) Earnings before interest, taxes, depreciation, amortization, and rental expense (EBITDAR).
Answer
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