When Examining the EBITDA Ratio,lower Numbers Are

question 52

Multiple Choice

When examining the EBITDA ratio,lower numbers are:

• A) considered good.
• B) considered mediocre.
• C) considered poor.
• D) indifferent to higher numbers.
• E) it is impossible to garner information from this ratio.

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, representing the value at which it is issued.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock and often pays dividends.

Cumulative

Refers to the total amount accumulated over a period of time, often used to describe amounts of money or measurements that build up until a specific point is reached.

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, which may differ from its market value.