The EV/EBITDA Ratio Has an Advantage Over the PE Ratio

question 8

Multiple Choice

The EV/EBITDA ratio has an advantage over the PE ratio in situations where comparisons are being made of firms that vary based on their

• A)method of depreciation.
• B)rate of growth.
• C)degree of leverage.
• D)level of cash.
• E)sales level.

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Definitions:

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To keep in an existing state or condition; to continue; to preserve from failure or decline.