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Bad5shah

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tT
发表于 2011-7-11 19:50 | 只看该作者

sale of receivables

interest, suddenly, one, things, before
brave ones...my last one before exam mode...

why do we have also to add interest expense to ebit when adjusting for sale of receivables....?

suddenly i start forgetting things...

many thanks!

 

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lc26mizzou

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2#
发表于 2011-7-11 19:50 | 只看该作者
same here....

because we add the recvbles as s/t liability so we add the s/t interest expense to the regular interest expense and compute the leverage and coverages.

But I am not sure if we add int to EBIT.

any corrections additions?

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