A multiple adding rental costs back before comparing to enterprise value is:
AEV/EBITDAP
BEV/EBITDAR
CEV/EBITDAS
DEV/EBITDAM
Answer & Solution
Correct answer: B. EV/EBITDAR
1. Rent is a major fixed cost in some industries.
2. Adding it back makes leased and owned operations comparable.
3. That multiple is EV over EBITDAR.
_Source: OpenStax Principles of Finance 2e, Chapter 11, Stocks and Stock Valuation._
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