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:

Cost

Refers to the amount of money incurred to produce or purchase goods or services.

Defective Motor

A motor that fails to operate within its specified performance criteria due to faults in design, material, or workmanship.

Discount Period

The time frame during which a payment made early is eligible for a discount according to the terms of the sales agreement.

Money Market Account

A type of savings account that typically offers both higher interest rates and greater withdrawal flexibility compared to regular savings accounts.