Use the Tables for the Question(s)below

question 69

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 EV/Sales ratio of Ideko in 2015 is closest to:

• A)1.7
• B)1.9
• C)1.6
• D)1.8

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Definitions:

Profit-Maximizing Level

The point at which a firm achieves the highest possible profit, where marginal revenue equals marginal cost.

Profit-Maximizing Price

The profit-maximizing price is the optimal price a firm can set for its product or service to achieve the highest possible profit, considering the balance between price, demand, and production costs.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and insurance.

Monopolistically Competitive

A market scenario where various companies offer products that are substitutes but different enough to give the companies some price-setting power.