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A company's EBIT is $35M, Discontinued Operations is $15M, Depreciation is $3M, and Amortization is $5M....

  1. A company's EBIT is $35M, Discontinued Operations is $15M, Depreciation is $3M, and Amortization is $5M. What is the company's EBITDA?
  1. $42M
  2. $43M
  3. $28M
  4. $50M
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Answer #1

EBITDA (Earning Before Interest , Tax , Depreciation , Amortization)

A company's earnings before interest, taxes, depreciation, and amortization is an accounting measure calculated using a entity's earnings, before interest expenses, taxes, depreciation, and amortization are subtracted, as a proxy for a company's current operating profitability.

EBITDA = EBIT + Depreciation + Amortization

Where,

EBIT = 35 million

Depreciation = 3 million

Amortization = 5 million

EBITDA = 35 + 3 + 5 = 43 million

Answer : 43 million

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