Use the Tables for the Question(s) Below

question 30

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,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)$155 million.
• B)$157 million.
• C)$165 million.
• D)$193 million.

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Definitions:

Dishonored Check

A check that a bank refuses to honor or pay because the account holder does not have sufficient funds.

Dishonor

The refusal or inability to fulfil an obligation, especially in relation to financial instruments like checks or promissory notes.

Nonpayable

Relates to a financial situation where a sum of money is not eligible to be paid out, often due to specific terms or conditions not being met.

Customer Death

A situation in which a business must address the death of a client, often involving the handling of accounts, services, or ongoing transactions.