Why Is Interest Added Back to Profit Before Tax When

question 47

Multiple Choice

Why is interest added back to profit before tax when calculating return on total assets?

• A) because the efficient use of resources should be examined independently from the method of financing
• B) to indicate to lenders that some risk is involved
• C) because interest rates vary over time
• D) A and B

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A secret plan by a group to do something unlawful or harmful, or the act of creating such plans.