Assuming That Ideko Has a EBITDA Multiple of 9

question 13

Multiple Choice

Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation unlevered P/E ratio of Ideko in 2010 is closest to:

• A)17.2
• B)16.4
• C)14.5
• D)19.4

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Definitions:

External Benefit

A positive effect experienced by individuals or groups who are not directly involved in an economic transaction or activity.

Market Price

The existing rate at which an item or service may be traded or acquired in a commercial setting.

Market Output

The total amount of goods or services produced and offered for sale by businesses in a particular market.

External Costs

Costs that are not borne by the producer or consumer of a good or service but by society, such as pollution.