Earnings before interest, taxes depreciation and amortization provides a measure
ID: 354934 • Letter: E
Question
Earnings before interest, taxes depreciation and amortization provides a measure of the company's free cash flow. True or False?
A public company would rather have zero depreciation so that it does not have to pay taxes. True or False?
Refers to spreading out the capital expenses a business incurs for tangible assets. True or False?
A private company would rather depreciate assets over a longer period of time so that they can keep earnings higher as they are valued by the metric EPS or earnings per share. True or False?
Explanation / Answer
1. Earnings before interest, taxes depreciation and amortization provides a measure of the company's free cash flow. False
False
True
True