Use the Tables for the Question(s) Below

question 39

Multiple Choice

Use the tables for the question(s) below.
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
The following are financial ratios for three comparable companies:

-Based upon the average EV/Sales ratio of the comparable firms,if Ideko holds $6.5 million of cash in excess of its working capital needs,then Ideko's target market value of equity is closest to:

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

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Definitions:

Money Income

Refers to the total amount of monetary earnings or receipts accruing to an individual or entity over a period, including wages, salaries, benefits, and income from investments.

Income Effect

The variation in a person's or an economy's earnings and its effect on the amount of a product or service that is requested.

Money Income

The total amount of monetary earnings or receipts accruing to an individual or household over a specified period of time.

Purchasing Power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.