Assuming That Ideko Has a EBITDA Multiple of 9

question 31

Multiple Choice

Assuming that Ideko has a 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:

Bondholder

A bondholder is an individual or institution that holds the debt security issued by governments or corporations, entitling them to receive interest payments and the return of principal.

Premium

A Premium refers to the amount paid for a contract of insurance or the amount by which a bond or stock's market value exceeds its face value or par value.

Effective-interest

Another term for the effective interest method, emphasizing the allocation of interest over the life of financial instruments like bonds.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds, paid as interest on debt such as loans, bonds, or lines of credit.