Use the Tables for the Question(s)below

question 108

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 levered price-earnings ratio of Ideko in 2015 is closest to:

• A)19.0
• B)17.2
• C)16.4
• D)14.5
• E)15.6

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Definitions:

Limited Liability

A legal structure that limits shareholders' or owners' personal responsibility for a company's debts and liabilities to their investment in the company.

Creditors

Individuals or institutions to whom money is owed by a person or organization.

Stockholders

Individuals or entities that own one or more shares of stock in a corporation, thus having a residual claim on the corporation's assets after liabilities have been paid.

Articles Of Incorporation

The document filed with a governmental body to legally document the creation of a corporation.