(1) Why do analysts care about how sensitive EBITDA and EBIT are to changes in revenue? (2)...

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(1) Why do analysts care about how sensitive EBITDA and EBIT are to changes in revenue?
(2) How is the proportion of fixed costs in a project’s cost structure related to the sensitivity of EBITDA and EBIT to changes in revenue?

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Question Posted: Jun 12, 2012 12:49 AM

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(1) Why do analysts care about how sensitive EBITDA and EBIT are to changes in revenue? (2)...

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Fundamentals of corporate finance

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