Earnings before interest, taxes, depreciation, and amortization (EBITDA) is best suited as a measure of: A) equity value. B) the potential to obtain corporate control. C) total company value. D) debt capacity.
C - basing it on FCFF
C) flows to both debt and equity
You are right guys. I dont know what I was thinking while answering. C is the answer.
C but terrible wording…
Agreed, they go to great lengths to emphasize that EBITDA is not a good proxy to use in equity valuation…
Aimee Wrote: ------------------------------------------------------- > Agreed, they go to great lengths to emphasize that > EBITDA is not a good proxy to use in equity > valuation… good point!