Use the Tables for the Question(s) Below

question 28

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 an EBITDA multiple of 9.4, then the continuation levered price-earnings ratio of Ideko in 2015 is closest to ________.

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

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Definitions:

Probabilities

A measure of the likelihood that an event will occur, expressed on a scale from 0 (impossible) to 1 (certain).

Invest

Distributing financial resources with the aim of achieving financial gain or income.

Probability

A measure of the likelihood that an event will occur, often expressed as a number between 0 and 1.

Expected Value

A calculation in probability theory that summarizes the expected return or outcome from a random event or situation.