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 9.4,then the continuation levered price-earnings ratio of Ideko in 2015 is closest to:

Question

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 9.4,then the continuation levered price-earnings ratio of Ideko in 2015 is closest to:

Quizplus · Accepted Answer

The continuation levered price-earnings ratio can be estimated using the formula: P/E = (EBITDA multiple) / (1 - tax rate). Assuming a typical tax rate of around 35%, the calculation would be: P/E = 9.4 / (1 - 0.35) = 9.4 / 0.65 = 14.46, which is closest to 17.2.

Use the Tables for the Question(s)below