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Since EBIT Is Not Necessarily Indicative of Cash Flow, Many

Question 34

Multiple Choice

Since EBIT is not necessarily indicative of cash flow, many financial analysts adjust the formulation by:


A) adding unpaid taxes to EBIT in the TIE formula.
B) adding unpaid taxes and interest to EBIT in the formula.
C) adding depreciation to EBIT in the TIE formula.
D) adding unpaid taxes, interest and depreciation to EBIT in the TIE formula.

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