Use the Tables for the Question(s)below

question 1

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 9.4,then the continuation levered P/E ratio of Ideko in 2010 is closest to:

• A)17.2.
• B)14.5.
• C)19.0.
• D)16.4.

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Definitions:

Passive Policy

An economic policy approach that involves minimal intervention by the government in the economy, allowing market forces to operate without active guidance or stimulus.

Short-run Aggregate Supply

The total production of goods and services in an economy at various price levels in a short-term period, before all production factors can be varied.

Aggregate Demand

The complete requirement for goods and services in an economy, determined at an established overall pricing level for a specific duration.

Rising Prices

An economic condition characterized by an increase in the cost of goods and services, typically signifying inflation.