ocr: Profit. - Betore Interest It may also be useful to explain why profit betore interest IS used: Profit before interest is the profit earned by the business betore having to make any interest payments to the suppliers oflong-term loan capital. The amount of interest payments will be dependent upon the capital structure of the business and the extent to which its long-term souILes of tunds derives trom either share capital or loan capital. Just as with tax it is accepted practice today tolook at the profits generated betore the distribution of these interest payments since we wish to emphasise op ...
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