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The following are financial ratios for three comparable companies:

-Based upon the average EV/EBITDA ratio of the comparable firms,Ideko's target economic value is closest to:
A)$191 million.
B)$155 million.
C)$157 million.
D)$193 million.

Question

Use the tables for the question(s) below.

The following are financial ratios for three comparable companies:

-Based upon the average EV/EBITDA ratio of the comparable firms,Ideko's target economic value is closest to:
A)$191 million. 
B)$155 million. 
C)$157 million. 
D)$193 million.

Quizplus · Accepted Answer

The target economic value is calculated using the average EV/EBITDA ratio of comparable firms. Based on the given options, $191 million is the closest estimate to the calculated target economic value using this method.

Use the Tables for the Question(s) Below