Earnings before interest, taxes, depreciation, and amortization (EBITDA) is best suited as a measure of:
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EBITDA is a pre-tax, pre-interest measure, which represents a flow to both equity and debt. Thus, it is better suited as an indicator of total company value than just equity value.
[此贴子已经被作者于2011-3-21 11:35:37编辑过]
If cash flow from operations (CFO) embeds financing-related flows, it should be adjusted by:
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Cash flow from operations CFO should be adjusted to CFO + (net cash interest outflow) × (1 – tax rate), if CFO embeds financing-related flows.
Which of the following measures of cash flow is most closely linked with valuation theory?
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FCFE is most strongly linked to valuation theory. Both remaining proxies are in need of significant adjustment to accurately measure cash flow in valuation.
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