Which of the Following Are Reasons That the Value-To-EBITA Ratio

question 5

Multiple Choice

Which of the following are reasons that the value-to-EBITA ratio is superior to the price-to-earnings ratio as a multiple to aid in valuation?
I.The P/E is distorted by capital structure.
II.The P/E is distorted by inflation.
III.The P/E is distorted by nonoperating gains and losses.
IV.The P/E is distorted by dividend payouts.

• A)I and III only.
• B)II and III only.
• C)II and IV only.
• D)I,III,and IV only.

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Definitions:

Subscapular

Pertaining to the area beneath the scapula or shoulder blade, often referenced in the context of muscle location or injections.

Axillary Lymph System

Part of the lymphatic system located in the armpit (axilla) area, containing lymph nodes that filter lymph fluid from the upper limbs, chest, and breast area.

Gynecomastia

The enlargement of breast tissue in males, which can occur due to hormonal imbalances, medication side effects, or certain diseases.

Hormonal Changes

Hormonal changes refer to variations in the levels of hormones in the body, which can affect various bodily functions and stages of life, such as puberty, pregnancy, and menopause.