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:

Allowance Factor

A factor applied in planning and design processes to account for potential deviations from standard or expected conditions, ensuring extra capacity or tolerance.

Time Study

A systematic observation and recording of times it takes to perform a specific task, used for setting standards and improving efficiency.

Sample Size

The number of observations or data points selected from a larger population for the purpose of statistical analysis.

Accuracy

The extent to which the outcome of a measurement, calculation, or specification aligns with the accurate value or a norm.