Use the Tables for the Question(s) Below

question 2

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,if Ideko holds $6.5 million of cash in excess of its working capital needs,then Ideko's target market value of equity is closest to:

• A)$165 million.
• B)$157 million.
• C)$193 million.
• D)$191 million.

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Definitions:

Residual Variation

The difference between observed values and those predicted by a statistical model, reflecting the portion of variation unexplained by the model.

Two Factors

In experimental design, refers to experiments that investigate the effect of two independent variables on a dependent variable.

Total Sum

The aggregate or overall total of a series of numbers or quantities.

Squares

In mathematics, the result of multiplying a number by itself.