One Advantage of the EV/EBITDA Ratio Over the PE Ratio

question 47

Multiple Choice

One advantage of the EV/EBITDA ratio over the PE ratio is the:

• A)inclusion of depreciation charges.
• B)increased reliance on leverage.
• C)averaging of annual sales.
• D)inclusion of all the firm's cash reserves.
• E)lessened impact of leverage on the ratio.

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Definitions:

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