Ask Question
4 March, 07:59

The primary weakness of EBITminusEPS analysis is that

A. it double counts the cost of debt financing.

B. it applies only to firms with large amounts of debt in their capital structure.

C. it may only be used by firms that are profitable this year.

D. it ignores the implicit cost of debt financing.

+1
Answers (1)
  1. 4 March, 09:31
    0
    D. it ignores the implicit cost of debt financing.

    Explanation:

    EBIT-EPS analysis is a technique used to determine the optimal capital structure in which the value of earnings per share (EPS) has the highest amount for a given amount of earnings before interest and taxes (EBIT).
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The primary weakness of EBITminusEPS analysis is that A. it double counts the cost of debt financing. B. it applies only to firms with ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers