Why is the use of EBIT, according to the text (book 3, p.222), a ‘biased cash flow estimator’? Thanks
For one thing it includes depreciation.
Because is based on accrual accounting not cash
Why is the use of EBIT, according to the text (book 3, p.222), a ‘biased cash flow estimator’? Thanks
For one thing it includes depreciation.
Because is based on accrual accounting not cash