Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
Pro Forma Balance Sheet for Ideko, 2005-2010

-Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation unlevered P/E ratio of Ideko in 2010 is closest to:
A) 25.9
B) 16.4
C) 14.5
D) 19.0

Question

Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2005-2010
  Pro Forma Balance Sheet for Ideko, 2005-2010
 
-Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation unlevered P/E ratio of Ideko in 2010 is closest to:
A) 25.9 
B) 16.4 
C) 14.5 
D) 19.0

Quizplus · Accepted Answer

A) Continuation Enterprise Value = EBITDA × EBITDA Multiple = 32.094 × 8.5 = $272.8 million
P/E = 11ea7e5a_6eef_635e_9a0a_a15b785b8066_TB1623_11 = 25.87

Use the Tables for the Question(s) Below