Do you agree with each of the following statements? Explain. EBITDA makes companies with asset-heavy balance sheets

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Do you agree with each of the following statements? Explain.

  • EBITDA makes companies with asset-heavy balance sheets look healthier than they may actually be.
  • EBITDA portrays a company’s debt serviceability— but only some types of debt.
  • EBITDA isn’t a determinant of cash flow at all.
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