EBIT and Leverage (LO1) Charny Inc. has no debt outstanding and a total market value of 165,000. Earnings before interest and taxes, EBIT, are projected to be 21,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 20 percent higher. If there is a recession, then EBIT will be 25 percent lower. Charny is considering a 60,000 debt issue with a 7 percent interest rate. The proceeds will be used to repurchase shares of stock. There are currently 5,

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Ekonomeme ID on Instagram: "“Pernah lihat laba perusahaan yang besar banget, tapi aslinya gak sebesar itu?” Di laporan keuangan, laba besar memang bikin perusahaan tampak sehat dan menguntungkan. Angka ini sering jadi sorotan utama, apalagi untuk menarik perhatian investor. Nah, ada istilah EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) yang sering dipakai untuk menampilkan laba. Tapi ini sebenarnya laba sebelum dikurangi bunga, pajak, dan penyusutan. Jadi angka EBITDA

Lisa K Crawford on Instagram: "Lisa K. Crawford, a South Florida Business Advisor with United Realty Group, explains an important financial term every business owner should know: EBITDA, which stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. EBITDA appears on a company’s income statement and serves as a key indicator of operating performance. It helps measure the overall health and strength of a business by showing how much profit it generates from core operations befo