Use the Tables for the Question(s) Below

question 34

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 EV/EBITDA ratio of the comparable firms,if Ideko holds $6.5 million of cash in excess of its working capital needs,then Ideko's target market value of equity is closest to:

• A) $155 million
• B) $157 million
• C) $165 million
• D) $191 million
• E) $193 million

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Definitions:

Rheumatoid Arthritis

A chronic inflammatory disorder affecting joints, including those in the hands and feet, characterized by joint pain, swelling, and stiffness.

Autoimmune Disorder

A condition in which the immune system mistakenly attacks the body's own tissues as though they were foreign invaders.

Synovial Joints

Joints that are encased in a flexible capsule filled with synovial fluid, facilitating movement by lubricating the joint surfaces.

Arthritis

A medical condition involving inflammation of the joints, leading to pain and stiffness.