Use the Tables for the Question(s)below

question 34

Multiple Choice

Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko,2010-2015
Pro Forma Balance Sheet for Ideko,2010-2015

-Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation enterprise value of Ideko in 2015 is closest to:

• A)$152.8 million
• B)$272.8 million
• C)$301.7 million
• D)$181.7 million
• E)$147.1 million

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.

Department Contribution Margin

A measure of a department's profitability, calculated as the difference between its sales and variable costs.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the efficiency of a company's core operations.

Direct Departmental Expenses

Costs that can be directly attributed to a specific department within an organization, such as salaries of departmental staff.