Assuming That Ideko Has a EBITDA Multiple of 8

question 6

Multiple Choice

Assuming that Ideko has a 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:

Industrialize

The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods.

Market-Oriented Economy

An economy in which decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.

Reforms

Changes made to improve a system, law, institution, or practice that are often enacted in response to instances of inefficiency or injustice.

Economic Model

A theoretical construct representing economic processes by a set of variables and a set of logical and/or quantitative relationships between them.