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Question
With regard to the interest coverage ratio, which of the following is the most accurate?
a) If near-term bankruptcy is an issue, EBITDA can be used to measure survival only over the short term.
b) EBITDA should be used to measure survival over both the short and the long term.
c) EBITA should be used to measure survival only in the short term (vs. long term).
d) None of the above are true.
Answer
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