Question: A potential problem when using EV/EBIT for relative valuation arises because: Group of answer choices Not all firms report EBIT. Interest is a non-capital charge.

A potential problem when using EV/EBIT for relative valuation arises because: Group of answer choices Not all firms report EBIT. Interest is a non-capital charge. Amortization is based on past acquisitions, not future investment, and therefore distorts comparisons. Amortization is typically much less than depreciation

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