Question

Which of the following is true in using EBIT, EBITA, or EBITDA when estimating a firm’s value?

a) EBIT is superior to both EBITA and EBITDA.

b) EBITA is superior to both EBIT and EBITDA.

c) EBITDA is superior to both EBIT and EBITA.

d) There is not a clear superiority of one measure over the others. It depends on the type of firm being analyzed.

Answer

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