Question

If revenue grows by 10%, would EBITDA grow by more, less, or the same?

a) More
b) Less
c) Same
d) Depends on Expenses

Answer 1

If revenue grows by 10%, EBITDA may grow more, less, or the same depending on various factors, such as expenses.

Step-by-step explanation:

If revenue grows by 10%, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) may grow more, less, or the same depending on various factors, such as expenses.

To determine the impact of revenue growth on EBITDA, we need to consider the expense structure of the business. If the expenses also increase proportionally or more than revenue, then EBITDA may grow less than 10%. Conversely, if the expenses increase less than the revenue or remain the same, EBITDA may grow more than 10%. Therefore, the answer is

d) Depends on Expenses

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