When solving for the numerator in EPS: Estimated Sales(EBITDA) - D - I (1-t) *Is Amortization ever a part of this equation? If so, is interest dropped in place of amortization? thanks.
Yeah I would think amortization is included, so I would deduct it out for calc. NI Interest isn’t dropped out, what if you have bonds that pay interest? EBITDA = earnings before interest depreciation and amoritzation EBITDA - Gross margin - Dep./Amor. EBIT -Interest EBT -Tax ______ NI - which is included in the numerator of EPS
Great explanation, thanks!