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:

Avoidance Powers

Legal powers granted to bankruptcy trustees or debtors in possession to invalidate certain pre-bankruptcy transactions made by the debtor, to protect the bankruptcy estate.

Bankruptcy Trustee

An individual appointed by the court to oversee and administer a debtor's estate in a bankruptcy case, ensuring the fair distribution of assets to creditors.

Mutual Mistake

A legal concept where all parties involved in a contract have a shared misunderstanding about a fundamental fact of the contract.

Qualified Pension Plan

A retirement plan that meets requirements set by the IRS, offering tax benefits to the employer and protection for the employees.