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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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I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

describe enterprise value multiples and their use in estimating equity value

CFA® 2024 Level I Curriculum, Volume 3, Module 8.