Use the Tables for the Question(s)below

question 2

Multiple Choice

Use the tables for the question(s) below.
Estimated 2010 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:

-Based upon the average price-earnings ratio of the comparable firms,Ideko's target market value of equity is closest to:

• A)$157 million
• B)$155 million
• C)$193 million
• D)$165 million
• E)$191 million

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Definitions:

Sales

The act of trading a good for monetary compensation; the process of making a sale.

Profits

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Linear Regression

A statistical method for modeling the relationship between a dependent variable and one or more independent variables, assuming a linear relationship.

Least Squares

A mathematical approach used in regression analysis to minimize the sum of the squares of the differences between observed and predicted values.