hard · CFA Level I fsa
Helion Rail has a Debt/EBITDA ratio of 4.5x. The company decides to enter into a large finance lease for new locomotives.
According to IFRS, this transaction will most likely cause the Debt/EBITDA ratio to:
- Remain unchanged because leases are off-balance sheet.
- Decrease because lease payments are operating expenses.
- Increase.
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