Assuming That Ideko Has a EBITDA Multiple of 9

question 33

Multiple Choice

Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation equity value of Ideko in 2010 is closest to:

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

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Definitions:

Net Income

The residual income of a business post all deductions, including taxes and expenses, from its gross income.

Net Sales

The total revenue generated from sales activities after deducting returns, allowances, and discounts.

Days' Sales in Inventory

A financial ratio that indicates the average time in days that a company takes to turn its inventory into sales.

Ending Inventory

The overall value of products for sale at the close of a fiscal period.