Condensed income statements for Comcast Corp., the largest U.S. cable operator, and DirecTV Group, Inc., a satellite-based entertainment company, for a recent year are provided below (in millions)....

Condensed income statements for Comcast Corp., the largest U.S. cable operator, and DirecTV Group, Inc., a satellite-based entertainment company, for a recent year are provided below (in millions). DirecTV Comcast Corp. Group Inc. Revenues $20,307 $11,360 Operating expenses (excluding depreciation) $ 7,462 $ 8,668 Selling, general, and administrative expenses 5,314 3,973 Depreciation expense 3,420 670 Amortization expense 1,203 168 Total expenses $17,399 $13,479 Operating income (loss) $ 2,908 $ (2,119) Interest income (expense) (1,112) 359 Income (loss) before tax $ 1,796 $ (1,760) Income tax (expense) benefit (826) 704 Net income $ 970 $ (1,056) a. Determine EBITDA for each company. b. Determine EBITDA divided by revenues for each company. c. Compare and contrast Comcast with DirecTV based on your answers to parts (a) and (b).



May 26, 2022
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