Use the Tables for the Question(s)below

question 11

Multiple Choice

Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko,2005-2010 Pro Forma Balance Sheet for Ideko,2005-2010
-Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation levered P/E ratio of Ideko in 2010 is closest to:

• A)19.0.
• B)17.2.
• C)16.4.
• D)14.5.

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Definitions:

Account Payable

Liabilities of a business that are owed to creditors for goods or services purchased on credit.

Total Assets

The sum of all assets owned by a company, including both current and non-current assets.

Accounting Systems

A structured process of collecting, recording, summarizing, and reporting financial transactions for a business or organization.

Common Shares

Equity securities representing ownership interests in a corporation, entitling holders to dividends and certain rights under corporate governance.