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 unlevered price-earnings ratio of Ideko in 2015 is closest to ________.
A) 17.2
B) 16.4
C) 14.5
D) 28.6

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 an EBITDA multiple of 9.4, then the continuation unlevered price-earnings ratio of Ideko in 2015 is closest to ________.
A) 17.2 
B) 16.4 
C) 14.5 
D) 28.6

Quizplus · Accepted Answer

D) Continuation enterprise value = EBITDA × EBITDA Multiple = $32.094 million × 9.4 11ea84dc_f4f9_45f6_9a63_672267525d75_TB1316_11_TB1316_11 P/E = 11ea84dc_f4f9_45f7_9a63_9550de16bbda_TB1316_11_TB1316_11 = 28.6

Use the Tables for the Question(s) Below