Use the Tables for the Question(s)below

question 15

Multiple Choice

Use the tables for the question(s) below.
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation The following are financial ratios for three comparable companies:
-Based upon the average P/E ratio of the comparable firms,Ideko's target market value of equity is closest to:

• A)$157 million
• B)$155 million
• C)$193 million
• D)$165 million

---

Definitions:

Book Value

Represents the value of a company as recorded on its books, calculated by subtracting total liabilities from total assets.

Market Value

The current value of an asset or company based on the price that it can be sold for on the open market.

Historical Cost

The initial cost of an asset or investment when it was first purchased.