Why is EBIT an important line item in the income statement? What does EBIT show us?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (9 reviews)
Earnings before interest and taxes EBIT is the lowest line on the incom...View the full answer
Answered By
Sarah Khan
My core expertise are:
-_ Finance
-_ Business
-_ Management
-_ Marketing Management
-_ Financial Management
-_ Corporate Finance
-_ HRM etc...
I have 7+ years of experience as an online tutor. I have hands-on experience in handling:
-_ Academic Papers
-_ Research Paper
-_ Dissertation Paper
-_ Case study analysis
-_ Research Proposals
-_ Business Plan
-_ Complexed financial calculations in excel
-_ Home Work Assistance
-_ PPT
-_ Thesis Paper
-_ Capstone Papers
-_ Essay Writing etc...
5.00+
91+ Reviews
92+ Question Solved
Related Book For
Question Posted:
Students also viewed these Corporate Finance questions
-
Why does depreciation appear as a line item in the reconciliation of operating profit with cash flow?
-
The corporation tax charge in the income statement (profit and loss account) for Year 2 was 30m. The tax liability in the statement of financial position at the start of Year 2 was 6m. The tax...
-
In the Income Statement columns of the end-of-period spreadsheet (work sheet) for Steward Consulting Co. for the current year, the Debit column total is $675,450 and the Credit column total is...
-
Let Find x , y , xy , and yx , and state the domain for each partial derivative. f(x, y) = [y, y = 0 1-y, y < 0.
-
Explain the following terms briefly: attribute, domain, entity, relationship, entity set, relationship set, one-to-many relationship, many-to-many relationship, participation constraint, overlap...
-
A bond portfolio manager gathered the following information about a bond issue: If yields are expected to decline by 75 basis points, which of the following would provide the most appropriate...
-
What is the primary source of directional stability in an aircraft?
-
The December 31, 2015, unadjusted trial balance for Demon Deacons Corporation is presented below. At year-end, the following additional information is available: a. The balance of Prepaid Rent,...
-
This week, you will learn a relativist approach to ethics and examine how people make decisions based on groups, cultures and affiliations they belong to and how this shapes decision-making. You will...
-
Prepare a 2021 balance sheet for Willis Corp. based on the following information: Cash = $165,000; Patents and copyrights = $858,000; Accounts payable = $273,000; Accounts receivable = $149,000;...
-
Discuss the purpose of an accounting system and financial statements in terms of the way the system represents the business.
-
What is meant by liquidity in financial statements?
-
The electrostatic potential satisfies Laplaces equation 2 u = 0 in any region free of charges. Also the heat equation u t = c 2 2 u reduces to Laplaces equation if the temperature u is...
-
(a) Find the linear recursion defining the sequence 0101110 0101110. . . of period 7. (b) Let Ek(m); Dk(c) be a block cipher. The special mode of this block cipher encrypts a sequence of message...
-
An investment with the following cash flow is available. Initial invetment is -$35,000 Payback is $5,500 per year for years 1 to 10 1) At MARR = 8% per year, is the project profitable based on...
-
You currently have $ 1 8 3 . 3 in your savings account at an annual rate of 5 percent. How many years will it take for this investment to grow to a value of $ 5 5 4 . 2 ? Round the answer to two...
-
If we accept that the value of a share of stock depends on dividends, why are investors willing to buy shares in companies listed on the NYSE and Nasdaq that don't pay dividends? Explain
-
The torque being produced by an small engine is 236.6 ft-lb while operating at 2000 RPM. The brake horsepower for that engine is?
-
Planning: Assessing Audience Needs Choose a fairly simple device that you know how to operate well. Write two sets of instructions for operating the device: one set for a reader who has never used...
-
Why do markets typically lead to an efficient outcome for buyers and sellers?
-
Use a calculator to evaluate an ordinary annuity formula \[A=m\left[\frac{\left(1+\frac{r}{n}ight)^{n t}-1}{\frac{r}{n}}ight]\] for \(m, r\), and \(t\) (respectively) given in Problems 7-22. Assume...
-
How is the IPO price of a stock determined? Is that price likely to be the stocks intrinsic value?
-
General Machine Works Inc. (GMW) has been losing money for some time but has managed to maintain an annual dividend of $1.. The companys strategy is to restructure by getting smaller while working on...
-
Mitech Corps stock has been growing at approximately 8% for several years and is now $30. Based on past growth rate performance, what would you expect the stocks price to be in five years?
-
State the dividend irrelevance proposition. What are the assumptions behind this proposition? Explain why this proposition does not hold in the real world. (20 marks)
-
How many monthly withdrawals of $1,400 will an investment of $75,000 sustain if the first withdrawal is made 12 months from now and the money earns 8.4% compounded monthly
-
1. You buy a bond with 3 years left to maturity and a yield to maturity of 6% for $920. After 1 year you receive a coupon payment of $30 and sell the bond for $940. What was your rate of return on...
Study smarter with the SolutionInn App