Use the Tables for the Question(s) Below

question 15

Multiple Choice

Use the tables for the question(s) below.

The following are financial ratios for three comparable companies:

-Based upon the average EV/EBITDA ratio of the comparable firms,Ideko's target economic value is closest to:

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

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Definitions:

Total Revenue

The total amount of income generated by the sale of goods or services before any expenses are subtracted.

COGS

Cost of Goods Sold, which refers to the direct costs attributable to the production of the goods sold by a company.

Economic Value Added

A measure of a company's financial performance based on the premise that true profit occurs when additional wealth is created for shareholders, beyond the cost of capital invested.