The Role of Collateralized Household Debt in Macroeconomic Stabilization
- Topics:
- Amortization
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Overview: Earnings are the flow of value created by corporations. This paper concentrates on the concept called EBITDA earnings before interest, taxes, depreciation, and amortization. This measure captures the results of the substantive non-financial activities of corporations and corresponds to the rental price of capital multiplied by the quantity of capital. It measures earnings per dollar of capital for all U.S. corporations and in 5 selected industries. It develops a competitive benchmark for the level of earnings, which takes account of adjustment costs, taxes, depreciation, and the financial opportunity cost of funds.
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Format: PDF | Size: 326KB | Date: May 2005 | Pages: 35




