Use the Tables for the Question(s) Below

question 45

Multiple Choice

Use the tables for the question(s) below.

The following are financial ratios for three comparable companies:

-Based upon the average EV/Sales ratio of the comparable firms,Ideko's target economic value is closest to:

• A)$191 million.
• B)$155 million.
• C)$165 million.
• D)$157 million.

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Definitions:

Tax Rate

The segment of financial income that is requisitioned by state authorities from individuals or businesses as tax.

All Equity

A capital structure of a company or financial strategy where all financing is derived from shareholders' equity rather than combining equity with debt financing.

Leverage

Utilizing borrowed capital to amplify the possible gains from an investment.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed on an annual basis.