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One Advantage of the EV/EBITDA Ratio Over the PE Ratio

Question 47

Multiple Choice

One advantage of the EV/EBITDA ratio over the PE ratio is the:


A) inclusion of depreciation charges.
B) increased reliance on leverage.
C) averaging of annual sales.
D) inclusion of all the firm's cash reserves.
E) lessened impact of leverage on the ratio.

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