Which of the Following Is the Major Limitation of Using

question 23

Multiple Choice

Which of the following is the major limitation of using EBITDA for analyzing foreign financial statements?

• A)It is nearly impossible for most financial analysts to calculate this number.
• B)Few analysts understand what this earnings number represents.
• C)The excluded items with this approach may have implications for determining the value of firms under evaluation.
• D)It cannot be converted from a foreign currency to a domestic currency.