Question: Question 6 : Why is EV / EBITDA preferred over the P / E ratio for valuing companies with high levels of debt? A .

Question 6: Why is EV/EBITDA preferred over the P/E ratio for valuing companies with high levels of debt? A. EV/EBITDA accounts for taxes and interest, while P/E does not B. EV/EBITDA is independent of capital structure, while P/E is not C. EV/EBITDA is a more accurate representation of equity value D. EV/EBITDA is easier to calculate than P/E

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