Assuming That Ideko Has a EBITDA Multiple of 9

question 48

Multiple Choice

Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation EV/Sales ratio of Ideko in 2010 is closest to:

• A)1.9
• B)1.7
• C)1.6
• D)1.8

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Definitions:

Accounts Payable

Money owed by a business to its suppliers or creditors for goods and services received but not yet paid for.

Recorded Increases

Entries in financial records that reflect an increase in assets, revenues, or any account that adds to the net worth or net income of a company.

Debited

In accounting, this term indicates that an entry has been made to the left side of an account, increasing assets or expenses, or decreasing equity, liability, or revenue.

Proprietorship

A business structure owned by a single individual, where the owner is personally responsible for the business's debts and liabilities.