Use the Tables for the Question(s) Below

question 34

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

---

Definitions:

Weighted-Average Method

An inventory costing method that assigns a cost to inventory on the basis of the average cost of all similar items in the inventory.

Lubricating Department

A specialized division in a manufacturing or maintenance facility focused on the application of lubricants to machinery and equipment to reduce friction and wear.

Assembly Department

A section in a manufacturing plant where components are assembled into finished goods.

Beginning Work

The value or quantity of inventory on hand at the start of a accounting period before any production or sales activities have occurred.