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Basic Question 1 of 3

Which statement is false regarding EBITDA?

A. It is a proxy for operating cash flow.
B. It can be viewed as a source of funds to pay interest, dividends, and taxes.
C. It does not include any non-cash expenses and non-cash revenues.
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User Contributed Comments 1

User Comment
davidt876 point here is that it is a 'proxy' for CFO - not equal to it
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Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh

Craig Baugh

Learning Outcome Statements

describe enterprise value multiples and their use in estimating equity value

CFA® 2025 Level I Curriculum, Volume 3, Module 8.