By Using the Debt-To-EBITDA Ratio,one Can Build a More Comprehensive

question 19

True/False

By using the debt-to-EBITDA ratio,one can build a more comprehensive picture of the risk of leverage.

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Definitions:

Marginal Social Benefits

The additional benefits to society as a whole from producing one more unit of a good or service.

Socially Optimal Level

The level of output or activity where the benefits to society are maximized, taking into account both private and external costs and benefits.

Marginal Private Benefits

The additional satisfaction or utility gained by a consumer or firm from consuming or producing one more unit of a good.

Positive Externalities

Benefits that are enjoyed by a third-party or the society at large, as a result of an economic transaction.