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Which of the following is an acceptable means for competency testing?
EBIT
Profitability metric that disregards interest and income tax expenses, known as earnings before interest and taxes.
Homemade Leverage
The use of personal borrowing to change the overall amount of financial leverage to which an individual or business is exposed.
Weighted Average Cost of Capital
Weighted Average Cost of Capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.
Levered Cost of Capital
The cost of capital for a company that has debt in its capital structure, reflecting the additional risk introduced by the use of debt.
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