Which of the following statements about EBIT and EBITDA margins is TRU

Which of the following statements about EBIT and EBITDA margins is TRUE?

A) EBIT and EBITDA ratios are one of the few sets of ratios that tend to be the same across almost all industries.
B) These ratios tell the firm what percentage of sales dollars are available to cover interest, taxes, and to provide a return to stockholders.
C) These measures are useful for internal analysis but not for external analysis.
D) These measures are useful for external analysis but not for internal analysis.

ANSWER

B