Use the Tables for the Question(s) Below

question 45

Multiple Choice

Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2010-2015
Pro Forma Balance Sheet for Ideko, 2010-2015

-Assuming that Ideko has an EBITDA multiple of 9.4, then the continuation enterprise value of Ideko in 2015 is closest to ________.

• A) $181.279 million
• B) $152.799 million
• C) $272.187 million
• D) $301.684 million

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Definitions:

Additive Manufacturing

A method that involves building items by depositing material in successive layers, widely referred to as 3D printing.

Fixed Set-Up Costs

Initial costs that do not vary with the level of production or sales, such as equipment purchases or facility leases, needing to be paid before production starts.

Economies of Scale

The savings businesses gain from operating at a larger scale, where the expense for each unit produced diminishes as the scale enlarges.

Short Run

A period in which at least one input in the production process is fixed, limiting the ability of a firm to adjust to changes in market demand.