The student has put in quite an effort in answering the three questions and main points of the questions have been explained concretely and concisely pointing out the specific concepts relevant to the questions without wandering off course and explaining concepts not related to the topic at hand. The reply of the student has been evaluated using the two-plus-two evaluation technique where two better areas of the reply are outlined and two areas of improvement have been indicated.
In reply to question 1 and 2 the student has achieved to imply the importance of Earnings before Interest and Taxes – EBIT and Earnings before Interest Taxes Depreciation and Amortization – EBITDA quite effectively. The significance of two measures of a company’s income and the impact the various elements of an income statement have on the two measures have been highlighted in an excellent fashion. The importance has been highlighted with conciseness, clarity and concreteness without deviating from the main theme of the article (Lonergan, 2003).
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