Use the Tables for the Question(s)below

question 21

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 9.4,then the continuation equity value of Ideko in 2015 is closest to:

• A)$152.8 million
• B)$181.7 million
• C)$301.7 million
• D)$272.8 million
• E)$334.8 million

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Definitions:

Labor

Refers to human effort, whether physical or mental, used in the production of goods and services.

Derived Demand

The demand for a good or service that results from the demand for a different, or intermediate, good or service.

Resources

Assets, materials, and human capabilities used to produce goods and services in an economy.

Final Goods

Refers to products that have completed the manufacturing process and are purchased by consumers without further processing.