hard · Investment Banking
A company has $1,000 million in revenue and $200 million in EBITDA.
If the company capitalizes $20 million of software development costs instead of expensing them, how does this impact its EV/EBITDA multiple?
- The EV will decrease by $20 million.
- The multiple will appear lower.
- The multiple will appear higher.
- There is no impact on the multiple.
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