Assuming That Ideko Has a EBITDA Multiple of 8

question 6

Multiple Choice

Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation equity value of Ideko in 2010 is closest to:

• A)$181.7 million
• B)$272.8 million
• C)$152.8 million
• D)$301.7 million

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Definitions:

Contract

A legally binding agreement between two or more parties that is enforceable by law, characterized by an offer, acceptance, consideration, and mutual intent to be bound.

Objective Determination

A decision made based on unbiased evidence and facts, without influence from personal feelings or opinions.

Consideration

An essential element in contract law, referring to something of value exchanged between parties as part of an agreement.

Consideration

In contract law, the value (which could be an object, service, money, or promise) that is given in exchange for a promise or performance by another party.