When Examining the EBITDA Ratio,lower Numbers Are

question 52

Multiple Choice

When examining the EBITDA ratio,lower numbers are:

• A) considered good.
• B) considered mediocre.
• C) considered poor.
• D) indifferent to higher numbers.
• E) it is impossible to garner information from this ratio.

---

Definitions:

Preferred Stock

A type of stock that provides holders with a fixed dividend prior to any dividend payments to common stockholders, and typically does not carry voting rights.

Common Stock

A form of corporate equity ownership, representing a share in the ownership of a company and a claim on a portion of its profits.

Cost of Preferred Stock

The dividend required to be paid by a company for its preferred shares, expressed as a percentage of the current market price.

Yield-to-Maturity

The total expected return on a bond if the bond is held until its maturity date, considering all interest payments and the repayment of principal.