EBITDA Represents a Simple Proxy for Cash Flows from Financing

question 11

True/False

EBITDA represents a simple proxy for cash flows from financing.

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Definitions:

Net Income

Total revenue minus total expenses, indicating the profitability of a company over a specified period.

Net Loss

The situation where a company's expenses exceed its revenues during a specific period, leading to a negative profit.

Long-term Debt

Loans, bonds, or other forms of financing that are repayable over a period longer than one year.

Cash Dividends

These are payments made by a company out of its profits to its shareholders, usually in the form of cash.