EBITDA

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!