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Question
Which of the following are reasons that the value-to-EBITA ratio is superior to the price-to-earnings ratio as a multiple to aid in valuation?
I. The P/E is distorted by capital structure.
II. The P/E is distorted by inflation.
III. The P/E is distorted by nonoperating gains and losses.
IV. The P/E is distorted by dividend payouts.
a) I and III only.
b) II and III only.
c) II and IV only.
d) I, III, and IV only.
Answer
This answer is hidden. It contains 14 characters.
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