3 ms·
Is this true if you manage to extract some of the capital leaving the debt?
by rileymat2 7y ago
Is this true if you manage to extract some of the capital leaving the debt?
- tvladeck 7y agoyes, in the sense that everything that's on the cap table (including special dividends, etc.) won't affect the P&L, except for the interest payments. but investors in the company treat interest payments separately, because it's just part of apportioning who on the cap table gets what. that's why investors often look at EBIT (earnings before interest and tax) and enterprise value as opposed to market cap, as enterprise value includes the value of the debt.