Use the Tables for the Question(s)below

question 96

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

• A)17.6
• B)16.4
• C)14.5
• D)19.0
• E)13.7

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Definitions:

Factory Floor

The area where workers manufacture products or operate machinery, typically within a manufacturing plant or factory.

Warehouse

A storage facility for housing goods in large quantities, typically before they are distributed for sale.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated as net profit divided by the cost of the investment.

Margin

The difference between the selling price of a product and the cost of the product, representing profitability.