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:

Creditor Beneficiary

A third party that benefits from a contract in which one party promises to pay a debt owed to the third party by the other contract party.

Promisee

The party in a contract who is promised something by another party (the promisor) and stands to benefit from the fulfillment of that promise.

Novation

The act of replacing one obligation with another, which involves a new party or a new agreement and extinguishes the original contract.

Substitute Contract

A legal agreement that replaces a previously made contract, either rectifying it or substituting parties or terms in the contract.