Assuming That Ideko Has a EBITDA Multiple of 8

question 3

Multiple Choice

Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation unlevered P/E ratio of Ideko in 2010 is closest to:

• A)17.6
• B)16.4
• C)14.5
• D)19.0

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Definitions:

Double-Declining-Balance

An accelerated depreciation method that doubles the regular depreciation rate, reducing the asset's value more quickly.