Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation equity value of Ideko in 2010 is closest to:
A)$152.8 million
B)$181.7 million
C)$301.7 million
D)$272.8 million

Question

Quizplus · Accepted Answer

B)Continuation Enterprise Value = EBITDA × EBITDA Multiple = 32.094 × 9.4 = $301.7 million
Continuation equity value = continuation enterprise value - debt = $301.7 - $120 = $181.7 million

Assuming That Ideko Has a EBITDA Multiple of 9