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 levered price-earnings ratio of Ideko in 2015 is closest to ________.
A) 17.2
B) 14.5
C) 19.0
D) 16.4

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 levered price-earnings ratio of Ideko in 2015 is closest to ________.
A) 17.2 
B) 14.5 
C) 19.0 
D) 16.4

Quizplus · Accepted Answer

A) Continuation enterprise value = EBITDA × EBITDA Multiple = $32.094 million × 9.4 11ea84dc_f4f9_bb2c_9a63_71e3a7056406_TB1316_11_TB1316_11 Continuation equity value = Continuation enterprise value - Debt 11ea84dc_f4f9_bb2d_9a63_f3c25ea4bf64_TB1316_11_TB1316_11 11ea84dc_f4f9_e23e_9a63_c50fe789dc3d_TB1316_11_TB1316_11 P/E= 11ea84dc_f4f9_e23f_9a63_2bc0edc9483e_TB1316_11_TB1316_11 = 17.2

Use the Tables for the Question(s) Below