Use the Tables for the Question(s) Below

question 15

Multiple Choice

Use the tables for the question(s) below.

The following are financial ratios for three comparable companies:

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

• A)$191 million.
• B)$155 million.
• C)$157 million.
• D)$193 million.

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Definitions:

Installation Costs

Expenses associated with setting up or fitting equipment, machinery, or systems for use, including labor and materials.

Purchase Price

The amount of money paid to buy an asset, security, or other item of value.

Capital Expenditures

Investments in physical assets like equipment, buildings, and property to enhance or acquire new business operations.

Utility

An economic term for the total satisfaction received from consuming a good or service.