When preparing a pre-LBO model, the historical income statement is completed until what point? A. Net income B. Interest expenses C. EBIT D. Operating expenses

Question

When preparing a pre-LBO model, the historical income statement is completed until what point? A. Net income B. Interest expenses C. EBIT D. Operating expenses
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Solution 1

The historical income statement in a pre-LBO (Leveraged Buyout) model is typically completed until EBIT (Earnings Before Interest and Taxes). So, the correct answer is C. EBIT.

Here's why:

  1. Start with revenue: The top of the income statement starts with total revenue or sales.

  2. Subtract oper Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob

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