Net operating income is similar to which of the following measures of cash flow in corporate finance?
A) Dividend yield
B) Earnings before deductions for interest, depreciation, income taxes, and amortization (EBIDTA)
C) Price-earnings ratio
D) Discount rate

Question

Quizplus · Accepted Answer

Net operating income (NOI) is a measure of a company's profitability from its core business operations, which is similar to earnings before deductions for interest, depreciation, income taxes, and amortization (EBIDTA) in corporate finance. Both measures exclude non-operating income and expenses, such as interest income and expense, and focus on the income generated from the primary business operations. Dividend yield, price-earnings ratio, and discount rate are not measures of cash flow, but rather metrics used for stock valuation and investment analysis.

Net Operating Income Is Similar to Which of the Following