Company XYZ is a high technology company. It is planning on acquiring another company in the high technology sector. Company XYZ does not have enough cash to acquire the company and is planning on financing the acquisition through a bond offering.

Which of the following measures is company XYZ MOST LIKEY to use in its analysis of operating profits considering it is a high debt transaction?

A. LONG-TERM DEBT TO CAPITAL 

B. EBITDA margin

C.Net profit margin

D.return on equity 

The most common way that companies structure their treasury operations is as a(n): 

A. Cost center 

B. Profit center

C. Shared service center

D. In-house bank 

Answer rating: 100% (QA)

Operating profit Earnings before interest and tax EBIT Company XYZ should most likely use long term ... View the full answer