Question: a) What is EBIT? b) Describe how EBIT is computed/determined. c) Illustrate how EBIT might affect the valuation of a company. d) Given similar tax

a) What is EBIT?

b) Describe how EBIT is computed/determined.

c) Illustrate how EBIT might affect the valuation of a company.

d) Given similar tax regimes or environment, is a company with more business loans likely to

pay HIGHER or LOWER taxes than its competitor with relatively less business loans?

WHY? PLEASE PROVIDE SAMPLE COMPUTATIONS TO EXPLAIN YOUR

ANSWER

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