Use the Tables for the Question(s)below

question 3

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 a EBITDA multiple of 8.5,then the continuation levered price-earnings ratio of Ideko in 2015 is closest to:

• A)19.0
• B)17.2
• C)16.4
• D)14.5

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Definitions:

Comparative Advantage

The ability of an individual or country to produce a good or service at a lower opportunity cost than others.

Production Possibility Curve

A graph that shows the maximum number of possible units a company can produce of two products given a set of inputs, reflecting the trade-off and opportunity cost of producing one product over another.

Trade

The action of buying, selling, or exchanging goods and services between people, firms, or countries.

Exchange Rate

The monetary worth assigned to one currency when converting it to another currency.