Use the Tables for the Question(s)below

question 21

Multiple Choice

Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko,2010-2015
Pro Forma Balance Sheet for Ideko,2010-2015

-Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation equity value of Ideko in 2015 is closest to:

• A)$152.8 million
• B)$181.7 million
• C)$301.7 million
• D)$272.8 million
• E)$334.8 million

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Definitions:

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and the government.

Semi-Strong Form

The semi-strong form is a level of market efficiency theory suggesting that asset prices reflect all publicly available information.

Mechanistic Hypothesis

The hypothesis that share prices respond mechanistically to changes in accounting numbers, ignoring the effects of accounting policies.

Capital Markets

Financial markets where long-term debt or equity-backed securities are bought and sold, assisting in raising capital.