Which of the Following Statements About EBIT and EBITDA Margins

question 63

Multiple Choice

Which of the following statements about EBIT and EBITDA margins is TRUE?

• A)EBIT and EBITDA ratios are one of the few sets of ratios that tend to be the same across almost all industries.
• B)These ratios tell the firm what percentage of sales dollars are available to cover interest,taxes,and to provide a return to stockholders.
• C)These measures are useful for internal analysis but not for external analysis.
• D)These measures are useful for external analysis but not for internal analysis.

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