Use the Tables for the Question(s) Below

question 30

Multiple Choice

Use the tables for the question(s) below.

The following are financial ratios for three comparable companies:

-Based upon the average EV/EBITDA ratio of the comparable firms,if Ideko holds $6.5 million of cash in excess of its working capital needs,then Ideko's target market value of equity is closest to:

• A)$155 million.
• B)$157 million.
• C)$165 million.
• D)$193 million.

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Definitions:

Liability Accounts

Financial accounting records that represent the obligations or debts a company owes to others.

Expense Accounts

Accounts used to track and categorize money spent by a company in conducting its operations.

Unearned Items

Items for which payment has been received, but the service or product has not yet been delivered or completed.

Liability Accounts

Accounts on a company's balance sheet that track what it owes to others, including loans, accounts payable, and mortgages.