Use the Tables for the Question(s)below

question 27

Multiple Choice

Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko,2005-2010 Pro Forma Balance Sheet for Ideko,2005-2010
-Assuming that Ideko has an EBITDA multiple of 8.5,then the continuation equity value of Ideko in 2010 is closest to:

• A)$181.7 million.
• B)$272.8 million.
• C)$152.8 million.
• D)$301.7 million.

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Definitions:

Expected Rate

An anticipated rate of return or growth, often used in the context of investments or economic forecasts.

Total Investment

The sum of all expenditures on capital goods by businesses and the government within a given period.

Interest Rate

The percentage of a sum of money charged for its use, serving as the cost of borrowing or the return on savings.

Expected Rate

A forecasted value or percentage in various contexts, such as return on investment or growth, based on current and historical data.