Which of the following is an advantage of EV/EBITDA ratio compared with P/E ratio? A. EV/EBITDA ratio considers depreciation charges. B. EV/EBITDA ratio includes all the firms' cash reserves. O C. EV/EBITDA ratio considers firms' debt financing. D. EV/EBITDA ratio focuses on the equity side of firms.
Which of the following is an advantage of EV/EBITDA ratio compared with P/E ratio? A. EV/EBITDA ratio considers depreciation charges. B. EV/EBITDA ratio includes all the firms' cash reserves. O C. EV/EBITDA ratio considers firms' debt financing. D. EV/EBITDA ratio focuses on the equity side of firms.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Which of the following is an advantage of EV/EBITDA ratio compared with P/E ratio?
O A. EV/EBITDA ratio considers depreciation charges.
B. EV/EBITDA ratio includes all the firms' cash reserves.
C. EV/EBITDA ratio considers firms' debt financing.
O D. EV/EBITDA ratio focuses on the equity side of firms.
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