Which of the following statements is most likely correct? Enterprise value:

A. is incapable of reflecting the real economic value of a company.

B. is prone to the negative earnings problem because of the use of EBITDA.

C. is applicable to the comparisons of companies with significantly different capital structures..

Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2015/07/09

Upvote (2) Views (13) Followers (5) Answers (6) Report Question

by Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants

Option c is the correct answer.

by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Yes, Option C is the right answer.

by Zehab Osman , Accountant , Aldar Consultancy Co.

C-----------------------------------------------

by Shazia Anees , Assistant Manager Finance , Arham Trading Company

C. is applicable to the comparisons of companies with significantly different capital structures.

by Muhammad Sohail Sohail , Assistant Manager - Fixed Assets , Coca-Cola Beverages Pakistan Limited

is incapable of reflecting the real economic value of a company.

by Shepherd Kapayapundo , Finance and Risk Manager , RAEIN-Africa

is prone to the negative earnings problem because of the use of EBITDA.

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