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:

Ending Inventory

The total value of all the goods available for sale at the end of an accounting period.

Average Unit Cost

The cost incurred for producing a single unit, calculated by dividing the total cost of production by the number of units produced.

Units

A measure of quantity representing the amount of product or service.

Inventory

The quantity of goods or materials that a business has on hand at any given time.