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Deck 19: Valuation and Financial Modeling: a Case Study
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Question
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
The free cash flow (in 000's)to the firm in 2010 is closest to:
A)$10,684.
B)$11,559.
C)$23,698.
D)$26,394.
Pro Forma Income Statement for Ideko,2005-2010
The free cash flow (in 000's)to the firm in 2010 is closest to:
A)$10,684.
B)$11,559.
C)$23,698.
D)$26,394.
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,if Ideko holds $6.5 million of cash in excess of its working capital needs,then Ideko's target market value of equity is closest to:
A)$155 million.
B)$157 million.
C)$165 million.
D)$193 million.
The following are financial ratios for three comparable companies:
Based upon the average EV/EBITDA ratio of the comparable firms,if Ideko holds $6.5 million of cash in excess of its working capital needs,then Ideko's target market value of equity is closest to:
A)$155 million.
B)$157 million.
C)$165 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 P/E ratio of the comparable firms,Ideko's target market value of equity is closest to:
A)$157 million.
B)$155 million.
C)$193 million.
D)$164 million.
The following are financial ratios for three comparable companies:
Based upon the average P/E ratio of the comparable firms,Ideko's target market value of equity is closest to:
A)$157 million.
B)$155 million.
C)$193 million.
D)$164 million.
Question
Use the tables for the question(s) below.
The following are financial ratios for three comparable companies:
What range for the market value of equity for Ideko is implied by the range of EV/Sales multiples for the comparable firms if Ideko holds $6.5 million of cash in excess of its working capital needs?
The following are financial ratios for three comparable companies:
What range for the market value of equity for Ideko is implied by the range of EV/Sales multiples for the comparable firms if Ideko holds $6.5 million of cash in excess of its working capital needs?
Question
Use the following information to answer the question(s)below:
Ideko's Planned Debt (000's)
If Ideko's loans will have an interest rate of 6.8%,then the interest expense (in 000's)paid in 2008 is closest to:
A)$6800.
B)$7310.
C)$7820.
D)$7990.
Ideko's Planned Debt (000's)
If Ideko's loans will have an interest rate of 6.8%,then the interest expense (in 000's)paid in 2008 is closest to:
A)$6800.
B)$7310.
C)$7820.
D)$7990.
Question
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
The after-tax interest expense (in 000's)in 2010 is closest to:
A)$0.
B)$2856.
C)$5304.
D)$8160.
Pro Forma Income Statement for Ideko,2005-2010
The after-tax interest expense (in 000's)in 2010 is closest to:
A)$0.
B)$2856.
C)$5304.
D)$8160.
Question
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
The free cash flow to equity (in 000's)in 2010 is closest to:
A)$6255.
B)$10,684.
C)$11,559.
D)$18,394.
Pro Forma Income Statement for Ideko,2005-2010
The free cash flow to equity (in 000's)in 2010 is closest to:
A)$6255.
B)$10,684.
C)$11,559.
D)$18,394.
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.
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/Sales ratio of the comparable firms,if Ideko holds $6.5 million of cash in excess of its working capital needs,then Ideko's target market value of equity is closest to:
A)$165 million.
B)$157 million.
C)$193 million.
D)$191 million.
The following are financial ratios for three comparable companies:
Based upon the average EV/Sales ratio of the comparable firms,if Ideko holds $6.5 million of cash in excess of its working capital needs,then Ideko's target market value of equity is closest to:
A)$165 million.
B)$157 million.
C)$193 million.
D)$191 million.
Question
Use the tables for the question(s)below.
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
Ideko's Accounts Receivable Days is closest to:
A)84 days.
B)95 days.
C)90 days.
D)75 days.
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
Ideko's Accounts Receivable Days is closest to:
A)84 days.
B)95 days.
C)90 days.
D)75 days.
Question
Use the tables for the question(s) below.
The following are financial ratios for three comparable companies:
Based upon the average EV/Sales ratio of the comparable firms,Ideko's target economic value is closest to:
A)$191 million.
B)$155 million.
C)$165 million.
D)$157 million.
The following are financial ratios for three comparable companies:
Based upon the average EV/Sales ratio of the comparable firms,Ideko's target economic value is closest to:
A)$191 million.
B)$155 million.
C)$165 million.
D)$157 million.
Question
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
The free cash flow to the firm (in 000's)in 2008 is closest to:
A)-$5005.
B)-$1755.
C)$5575.
D)$14,995.
Pro Forma Income Statement for Ideko,2005-2010
The free cash flow to the firm (in 000's)in 2008 is closest to:
A)-$5005.
B)-$1755.
C)$5575.
D)$14,995.
Question
Use the tables for the question(s) below.
The following are financial ratios for three comparable companies:
What range for the market value of equity for Ideko is implied by the range of P/E multiples for the comparable firms?
The following are financial ratios for three comparable companies:
What range for the market value of equity for Ideko is implied by the range of P/E multiples for the comparable firms?
Question
Use the table for the question(s)below.
Ideko Sales and Operating Cost Assumptions
Based upon Ideko's Sales and Operating Cost Assumptions,what production capacity (in 000's)will Ideko require in 2007?
A)1505 units
B)1323 units
C)1914 units
D)1115 units
Ideko Sales and Operating Cost Assumptions
Based upon Ideko's Sales and Operating Cost Assumptions,what production capacity (in 000's)will Ideko require in 2007?
A)1505 units
B)1323 units
C)1914 units
D)1115 units
Question
Use the table for the question(s)below.
Ideko Sales and Operating Cost Assumptions
Based upon Ideko's Sales and Operating Cost Assumptions,what production capacity (in 000's)will Ideko require in 2008?
A)1702 units
B)1323 units
C)1505 units
D)1914 units
Ideko Sales and Operating Cost Assumptions
Based upon Ideko's Sales and Operating Cost Assumptions,what production capacity (in 000's)will Ideko require in 2008?
A)1702 units
B)1323 units
C)1505 units
D)1914 units
Question
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
The free cash flow to equity (in 000's)in 2008 is closest to:
A)-5005.
B)-1755.
C)5575.
D)9995.
Pro Forma Income Statement for Ideko,2005-2010
The free cash flow to equity (in 000's)in 2008 is closest to:
A)-5005.
B)-1755.
C)5575.
D)9995.
Question
Use the table for the question(s)below.
Ideko Sales and Operating Cost Assumptions
Based upon Ideko's Sales and Operating Cost Assumptions,what production capacity (in 000's)will Ideko require in 2009?
A)1505 units
B)1115 units
C)1323 units
D)1702 units
Ideko Sales and Operating Cost Assumptions
Based upon Ideko's Sales and Operating Cost Assumptions,what production capacity (in 000's)will Ideko require in 2009?
A)1505 units
B)1115 units
C)1323 units
D)1702 units
Question
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
The after-tax interest expense (in 000's)in 2008 is closest to:
A)$2380.
B)$4420.
C)$6800.
D)$7820.
Pro Forma Income Statement for Ideko,2005-2010
The after-tax interest expense (in 000's)in 2008 is closest to:
A)$2380.
B)$4420.
C)$6800.
D)$7820.
Question
Use the tables for the question(s) below.
The following are financial ratios for three comparable companies:
What range for the market value of equity for Ideko is implied by the range of EV/EBITDA multiples for the comparable firms if Ideko holds $6.5 million of cash in excess of its working capital needs?
The following are financial ratios for three comparable companies:
What range for the market value of equity for Ideko is implied by the range of EV/EBITDA multiples for the comparable firms if Ideko holds $6.5 million of cash in excess of its working capital needs?
Question
Use the following information to answer the question(s)below:
Ideko's Planned Debt (000's)
If Ideko's loans will have an interest rate of 6.8%,then the interest expense (in 000's)paid in 2009 is closest to:
A)$6800.
B)$7310.
C)$7820.
D)$7990.
Ideko's Planned Debt (000's)
If Ideko's loans will have an interest rate of 6.8%,then the interest expense (in 000's)paid in 2009 is closest to:
A)$6800.
B)$7310.
C)$7820.
D)$7990.
Question
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
With the proper changes it is believed that Ideko's credit policies will allow for an accounts receivable days of 60.The forecasted accounts receivable (in 000's)for Ideko in 2008 is closest to:
A)$14,525.
B)$19,690.
C)$22,710.
D)$16,970.
Pro Forma Income Statement for Ideko,2005-2010
With the proper changes it is believed that Ideko's credit policies will allow for an accounts receivable days of 60.The forecasted accounts receivable (in 000's)for Ideko in 2008 is closest to:
A)$14,525.
B)$19,690.
C)$22,710.
D)$16,970.
Question
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
The amount of the increase in net working capital (in 000's)for Ideko in 2007 is closest to:
A)$4090.
B)$4685.
C)$3665.
D)$5230.
Pro Forma Income Statement for Ideko,2005-2010
The amount of the increase in net working capital (in 000's)for Ideko in 2007 is closest to:
A)$4090.
B)$4685.
C)$3665.
D)$5230.
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 
If Ideko's future expected growth rate is 5% and its WACC is 9%,then the continuation value (in 000's)in 2010 is closest to:
A)$164,200.
B)$278,775.
C)$280,450.
D)$303,425.
Pro Forma Income Statement for Ideko,2005-2010
Pro Forma Balance Sheet for Ideko,2005-2010 If Ideko's future expected growth rate is 5% and its WACC is 9%,then the continuation value (in 000's)in 2010 is closest to:
A)$164,200.
B)$278,775.
C)$280,450.
D)$303,425.
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 an EBITDA multiple of 8.5,then the continuation enterprise value of Ideko in 2010 is closest to:
A)$152.8 million.
B)$272.8 million.
C)$301.7 million.
D)$181.7 million.
Pro Forma Income Statement for Ideko,2005-2010
Pro Forma Balance Sheet for Ideko,2005-2010 Assuming that Ideko has an EBITDA multiple of 8.5,then the continuation enterprise value of Ideko in 2010 is closest to:
A)$152.8 million.
B)$272.8 million.
C)$301.7 million.
D)$181.7 million.
Question
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
With the proper changes it is believed that Ideko's credit policies will allow for an accounts receivable days of 60.The forecasted accounts receivable (in 000's)for Ideko in 2007 is closest to:
A)$14,525.
B)$16,970.
C)$22,710.
D)$19,690.
Pro Forma Income Statement for Ideko,2005-2010
With the proper changes it is believed that Ideko's credit policies will allow for an accounts receivable days of 60.The forecasted accounts receivable (in 000's)for Ideko in 2007 is closest to:
A)$14,525.
B)$16,970.
C)$22,710.
D)$19,690.
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
If Ideko's future expected growth rate is 5%,then the estimated free cash flow (in 000's)for 2011 is closest to:
A)$6568.
B)$11,151.
C)$11,218.
D)$12,137.
Pro Forma Income Statement for Ideko,2005-2010
Pro Forma Balance Sheet for Ideko,2005-2010 If Ideko's future expected growth rate is 5%,then the estimated free cash flow (in 000's)for 2011 is closest to:
A)$6568.
B)$11,151.
C)$11,218.
D)$12,137.
Question
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
Using the income statement above and the following information (in $000's):
Calculate Ideko's Free Cash Flow to the Firm and Free Cash Flow to Equity in 2009.
Pro Forma Income Statement for Ideko,2005-2010
Using the income statement above and the following information (in $000's):
Calculate Ideko's Free Cash Flow to the Firm and Free Cash Flow to Equity in 2009. Question
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
The amount of net working capital (in 000's)for Ideko in 2006 is closest to:
A)$22,750.
B)$35,195.
C)$30,510.
D)$26,420.
Pro Forma Income Statement for Ideko,2005-2010
The amount of net working capital (in 000's)for Ideko in 2006 is closest to:
A)$22,750.
B)$35,195.
C)$30,510.
D)$26,420.
Question
Use the table for the question(s)below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Oakley is closest to:
A)13.5%.
B)10.2%.
C)9.1%.
D)14.7%.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Oakley is closest to:
A)13.5%.
B)10.2%.
C)9.1%.
D)14.7%.
Question
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
The amount of net working capital (in 000's)for Ideko in 2008 is closest to:
A)$35,195.
B)$26,420.
C)$22,170.
D)$30,510.
Pro Forma Income Statement for Ideko,2005-2010
The amount of net working capital (in 000's)for Ideko in 2008 is closest to:
A)$35,195.
B)$26,420.
C)$22,170.
D)$30,510.
Question
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
Using the income statement above and the following information (in $000's):
Calculate Ideko's Free Cash Flow to the Firm and Free Cash Flow to Equity in 2007.
Pro Forma Income Statement for Ideko,2005-2010
Using the income statement above and the following information (in $000's):
Calculate Ideko's Free Cash Flow to the Firm and Free Cash Flow to Equity in 2007. Question
Use the table for the question(s)below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
The unlevered beta for Nike is closest to:
A)0.70.
B)1.00.
C)1.50.
D)0.60.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
The unlevered beta for Nike is closest to:
A)0.70.
B)1.00.
C)1.50.
D)0.60.
Question
Use the table for the question(s)below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
The unlevered beta for Luxottica is closest to:
A)1.00.
B)0.60.
C)0.70.
D)1.50.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
The unlevered beta for Luxottica is closest to:
A)1.00.
B)0.60.
C)0.70.
D)1.50.
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 an EBITDA multiple of 8.5,then the continuation equity value of Ideko in 2010 is closest to:
A)$181.7 million.
B)$272.8 million.
C)$152.8 million.
D)$301.7 million.
Pro Forma Income Statement for Ideko,2005-2010
Pro Forma Balance Sheet for Ideko,2005-2010 Assuming that Ideko has an EBITDA multiple of 8.5,then the continuation equity value of Ideko in 2010 is closest to:
A)$181.7 million.
B)$272.8 million.
C)$152.8 million.
D)$301.7 million.
Question
Use the table for the question(s)below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
The unlevered beta for Oakley is closest to:
A)0.70.
B)1.50.
C)1.00.
D)0.60.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
The unlevered beta for Oakley is closest to:
A)0.70.
B)1.50.
C)1.00.
D)0.60.
Question
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
With the proper changes it is believed that Ideko's credit policies will allow for an accounts receivable days of 60.The forecasted accounts receivable (in 000's)for Ideko in 2006 is closest to:
A)$19,690.
B)$16,970.
C)$22,710.
D)$14,525.
Pro Forma Income Statement for Ideko,2005-2010
With the proper changes it is believed that Ideko's credit policies will allow for an accounts receivable days of 60.The forecasted accounts receivable (in 000's)for Ideko in 2006 is closest to:
A)$19,690.
B)$16,970.
C)$22,710.
D)$14,525.
Question
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
The amount of net working capital (in 000's)for Ideko in 2007 is closest to:
A)$30,510.
B)$26,420.
C)$22,170.
D)$35,195.
Pro Forma Income Statement for Ideko,2005-2010
The amount of net working capital (in 000's)for Ideko in 2007 is closest to:
A)$30,510.
B)$26,420.
C)$22,170.
D)$35,195.
Question
Use the table for the question(s)below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Luxottica is closest to:
A)10.2%.
B)13.5%.
C)9.1%.
D)14.7%.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Luxottica is closest to:
A)10.2%.
B)13.5%.
C)9.1%.
D)14.7%.
Question
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
The amount of the increase in net working capital (in 000's)for Ideko in 2008 is closest to:
A)$4685.
B)$3665.
C)$4090.
D)$5230.
Pro Forma Income Statement for Ideko,2005-2010
The amount of the increase in net working capital (in 000's)for Ideko in 2008 is closest to:
A)$4685.
B)$3665.
C)$4090.
D)$5230.
Question
Use the table for the question(s)below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Nike is closest to:
A)14.7%.
B)10.2%.
C)9.1%.
D)13.5%.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Nike is closest to:
A)14.7%.
B)10.2%.
C)9.1%.
D)13.5%.
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 an EBITDA multiple of 9.4,then the continuation EV/Sales ratio of Ideko in 2010 is closest to:
A)1.9.
B)1.7.
C)1.6.
D)1.8.
Pro Forma Income Statement for Ideko,2005-2010
Pro Forma Balance Sheet for Ideko,2005-2010 Assuming that Ideko has an EBITDA multiple of 9.4,then the continuation EV/Sales ratio of Ideko in 2010 is closest to:
A)1.9.
B)1.7.
C)1.6.
D)1.8.
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 an EBITDA multiple of 8.5,then the continuation EV/Sales ratio of Ideko in 2010 is closest to:
A)1.7.
B)1.9.
C)1.6.
D)1.8.
Pro Forma Income Statement for Ideko,2005-2010
Pro Forma Balance Sheet for Ideko,2005-2010 Assuming that Ideko has an EBITDA multiple of 8.5,then the continuation EV/Sales ratio of Ideko in 2010 is closest to:
A)1.7.
B)1.9.
C)1.6.
D)1.8.
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 an EBITDA multiple of 9.4,then the continuation equity value of Ideko in 2010 is closest to:
A)$152.8 million.
B)$181.7 million.
C)$301.7 million.
D)$272.8 million.
Pro Forma Income Statement for Ideko,2005-2010
Pro Forma Balance Sheet for Ideko,2005-2010 Assuming that Ideko has an EBITDA multiple of 9.4,then the continuation equity value of Ideko in 2010 is closest to:
A)$152.8 million.
B)$181.7 million.
C)$301.7 million.
D)$272.8 million.
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 an EBITDA multiple of 9.4,then the continuation enterprise value of Ideko in 2010 is closest to:
A)$181.7 million.
B)$152.8 million.
C)$272.8 million.
D)$301.7 million.
Pro Forma Income Statement for Ideko,2005-2010
Pro Forma Balance Sheet for Ideko,2005-2010 Assuming that Ideko has an EBITDA multiple of 9.4,then the continuation enterprise value of Ideko in 2010 is closest to:
A)$181.7 million.
B)$152.8 million.
C)$272.8 million.
D)$301.7 million.
Question
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 an EBITDA multiple of 9.4,then the continuation levered P/E ratio of Ideko in 2010 is closest to:
A)17.2.
B)14.5.
C)19.0.
D)16.4.
Pro Forma Income Statement for Ideko,2005-2010
Pro Forma Balance Sheet for Ideko,2005-2010 Assuming that Ideko has an EBITDA multiple of 9.4,then the continuation levered P/E ratio of Ideko in 2010 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,2005-2010 Pro Forma Balance Sheet for Ideko,2005-2010
Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation levered P/E ratio of Ideko in 2010 is closest to:
A)19.0.
B)17.2.
C)16.4.
D)14.5.
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 levered P/E ratio of Ideko in 2010 is closest to:
A)19.0.
B)17.2.
C)16.4.
D)14.5.
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 an EBITDA multiple of 8.5,then the continuation unlevered P/E ratio of Ideko in 2010 is closest to:
A)17.6.
B)16.4.
C)14.5.
D)19.0.
Pro Forma Income Statement for Ideko,2005-2010
Pro Forma Balance Sheet for Ideko,2005-2010 Assuming that Ideko has an EBITDA multiple of 8.5,then the continuation unlevered P/E ratio of Ideko in 2010 is closest to:
A)17.6.
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 an EBITDA multiple of 9.4,then the continuation unlevered P/E ratio of Ideko in 2010 is closest to:
A)17.2.
B)16.4.
C)14.5.
D)19.4.
Pro Forma Income Statement for Ideko,2005-2010
Pro Forma Balance Sheet for Ideko,2005-2010 Assuming that Ideko has an EBITDA multiple of 9.4,then the continuation unlevered P/E ratio of Ideko in 2010 is closest to:
A)17.2.
B)16.4.
C)14.5.
D)19.4.
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Deck 19: Valuation and Financial Modeling: a Case Study
1
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
The free cash flow (in 000's)to the firm in 2010 is closest to:
A)$10,684.
B)$11,559.
C)$23,698.
D)$26,394.
Pro Forma Income Statement for Ideko,2005-2010
The free cash flow (in 000's)to the firm in 2010 is closest to:
A)$10,684.
B)$11,559.
C)$23,698.
D)$26,394.
$11,559.
2
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,if Ideko holds $6.5 million of cash in excess of its working capital needs,then Ideko's target market value of equity is closest to:
A)$155 million.
B)$157 million.
C)$165 million.
D)$193 million.
The following are financial ratios for three comparable companies:
Based upon the average EV/EBITDA ratio of the comparable firms,if Ideko holds $6.5 million of cash in excess of its working capital needs,then Ideko's target market value of equity is closest to:
A)$155 million.
B)$157 million.
C)$165 million.
D)$193 million.
$193 million.
3
Use the tables for the question(s) below.
The following are financial ratios for three comparable companies:
Based upon the average P/E ratio of the comparable firms,Ideko's target market value of equity is closest to:
A)$157 million.
B)$155 million.
C)$193 million.
D)$164 million.
The following are financial ratios for three comparable companies:
Based upon the average P/E ratio of the comparable firms,Ideko's target market value of equity is closest to:
A)$157 million.
B)$155 million.
C)$193 million.
D)$164 million.
$164 million.
4
Use the tables for the question(s) below.
The following are financial ratios for three comparable companies:
What range for the market value of equity for Ideko is implied by the range of EV/Sales multiples for the comparable firms if Ideko holds $6.5 million of cash in excess of its working capital needs?
The following are financial ratios for three comparable companies:
What range for the market value of equity for Ideko is implied by the range of EV/Sales multiples for the comparable firms if Ideko holds $6.5 million of cash in excess of its working capital needs?
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5
Use the following information to answer the question(s)below:
Ideko's Planned Debt (000's)
If Ideko's loans will have an interest rate of 6.8%,then the interest expense (in 000's)paid in 2008 is closest to:
A)$6800.
B)$7310.
C)$7820.
D)$7990.
Ideko's Planned Debt (000's)
If Ideko's loans will have an interest rate of 6.8%,then the interest expense (in 000's)paid in 2008 is closest to:
A)$6800.
B)$7310.
C)$7820.
D)$7990.
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Unlock for access to all 49 flashcards in this deck.
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6
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
The after-tax interest expense (in 000's)in 2010 is closest to:
A)$0.
B)$2856.
C)$5304.
D)$8160.
Pro Forma Income Statement for Ideko,2005-2010
The after-tax interest expense (in 000's)in 2010 is closest to:
A)$0.
B)$2856.
C)$5304.
D)$8160.
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7
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
The free cash flow to equity (in 000's)in 2010 is closest to:
A)$6255.
B)$10,684.
C)$11,559.
D)$18,394.
Pro Forma Income Statement for Ideko,2005-2010
The free cash flow to equity (in 000's)in 2010 is closest to:
A)$6255.
B)$10,684.
C)$11,559.
D)$18,394.
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Unlock for access to all 49 flashcards in this deck.
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8
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.
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.
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
9
Use the tables for the question(s) below.
The following are financial ratios for three comparable companies:
Based upon the average EV/Sales ratio of the comparable firms,if Ideko holds $6.5 million of cash in excess of its working capital needs,then Ideko's target market value of equity is closest to:
A)$165 million.
B)$157 million.
C)$193 million.
D)$191 million.
The following are financial ratios for three comparable companies:
Based upon the average EV/Sales ratio of the comparable firms,if Ideko holds $6.5 million of cash in excess of its working capital needs,then Ideko's target market value of equity is closest to:
A)$165 million.
B)$157 million.
C)$193 million.
D)$191 million.
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Unlock for access to all 49 flashcards in this deck.
Unlock Deck
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10
Use the tables for the question(s)below.
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
Ideko's Accounts Receivable Days is closest to:
A)84 days.
B)95 days.
C)90 days.
D)75 days.
Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation
Ideko's Accounts Receivable Days is closest to:
A)84 days.
B)95 days.
C)90 days.
D)75 days.
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Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
11
Use the tables for the question(s) below.
The following are financial ratios for three comparable companies:
Based upon the average EV/Sales ratio of the comparable firms,Ideko's target economic value is closest to:
A)$191 million.
B)$155 million.
C)$165 million.
D)$157 million.
The following are financial ratios for three comparable companies:
Based upon the average EV/Sales ratio of the comparable firms,Ideko's target economic value is closest to:
A)$191 million.
B)$155 million.
C)$165 million.
D)$157 million.
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
12
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
The free cash flow to the firm (in 000's)in 2008 is closest to:
A)-$5005.
B)-$1755.
C)$5575.
D)$14,995.
Pro Forma Income Statement for Ideko,2005-2010
The free cash flow to the firm (in 000's)in 2008 is closest to:
A)-$5005.
B)-$1755.
C)$5575.
D)$14,995.
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Unlock for access to all 49 flashcards in this deck.
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13
Use the tables for the question(s) below.
The following are financial ratios for three comparable companies:
What range for the market value of equity for Ideko is implied by the range of P/E multiples for the comparable firms?
The following are financial ratios for three comparable companies:
What range for the market value of equity for Ideko is implied by the range of P/E multiples for the comparable firms?
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Unlock for access to all 49 flashcards in this deck.
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14
Use the table for the question(s)below.
Ideko Sales and Operating Cost Assumptions
Based upon Ideko's Sales and Operating Cost Assumptions,what production capacity (in 000's)will Ideko require in 2007?
A)1505 units
B)1323 units
C)1914 units
D)1115 units
Ideko Sales and Operating Cost Assumptions
Based upon Ideko's Sales and Operating Cost Assumptions,what production capacity (in 000's)will Ideko require in 2007?
A)1505 units
B)1323 units
C)1914 units
D)1115 units
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15
Use the table for the question(s)below.
Ideko Sales and Operating Cost Assumptions
Based upon Ideko's Sales and Operating Cost Assumptions,what production capacity (in 000's)will Ideko require in 2008?
A)1702 units
B)1323 units
C)1505 units
D)1914 units
Ideko Sales and Operating Cost Assumptions
Based upon Ideko's Sales and Operating Cost Assumptions,what production capacity (in 000's)will Ideko require in 2008?
A)1702 units
B)1323 units
C)1505 units
D)1914 units
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Unlock for access to all 49 flashcards in this deck.
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16
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
The free cash flow to equity (in 000's)in 2008 is closest to:
A)-5005.
B)-1755.
C)5575.
D)9995.
Pro Forma Income Statement for Ideko,2005-2010
The free cash flow to equity (in 000's)in 2008 is closest to:
A)-5005.
B)-1755.
C)5575.
D)9995.
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Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
17
Use the table for the question(s)below.
Ideko Sales and Operating Cost Assumptions
Based upon Ideko's Sales and Operating Cost Assumptions,what production capacity (in 000's)will Ideko require in 2009?
A)1505 units
B)1115 units
C)1323 units
D)1702 units
Ideko Sales and Operating Cost Assumptions
Based upon Ideko's Sales and Operating Cost Assumptions,what production capacity (in 000's)will Ideko require in 2009?
A)1505 units
B)1115 units
C)1323 units
D)1702 units
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
18
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
The after-tax interest expense (in 000's)in 2008 is closest to:
A)$2380.
B)$4420.
C)$6800.
D)$7820.
Pro Forma Income Statement for Ideko,2005-2010
The after-tax interest expense (in 000's)in 2008 is closest to:
A)$2380.
B)$4420.
C)$6800.
D)$7820.
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
19
Use the tables for the question(s) below.
The following are financial ratios for three comparable companies:
What range for the market value of equity for Ideko is implied by the range of EV/EBITDA multiples for the comparable firms if Ideko holds $6.5 million of cash in excess of its working capital needs?
The following are financial ratios for three comparable companies:
What range for the market value of equity for Ideko is implied by the range of EV/EBITDA multiples for the comparable firms if Ideko holds $6.5 million of cash in excess of its working capital needs?
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Unlock for access to all 49 flashcards in this deck.
Unlock Deck
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20
Use the following information to answer the question(s)below:
Ideko's Planned Debt (000's)
If Ideko's loans will have an interest rate of 6.8%,then the interest expense (in 000's)paid in 2009 is closest to:
A)$6800.
B)$7310.
C)$7820.
D)$7990.
Ideko's Planned Debt (000's)
If Ideko's loans will have an interest rate of 6.8%,then the interest expense (in 000's)paid in 2009 is closest to:
A)$6800.
B)$7310.
C)$7820.
D)$7990.
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
21
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
With the proper changes it is believed that Ideko's credit policies will allow for an accounts receivable days of 60.The forecasted accounts receivable (in 000's)for Ideko in 2008 is closest to:
A)$14,525.
B)$19,690.
C)$22,710.
D)$16,970.
Pro Forma Income Statement for Ideko,2005-2010
With the proper changes it is believed that Ideko's credit policies will allow for an accounts receivable days of 60.The forecasted accounts receivable (in 000's)for Ideko in 2008 is closest to:
A)$14,525.
B)$19,690.
C)$22,710.
D)$16,970.
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Unlock for access to all 49 flashcards in this deck.
Unlock Deck
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22
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
The amount of the increase in net working capital (in 000's)for Ideko in 2007 is closest to:
A)$4090.
B)$4685.
C)$3665.
D)$5230.
Pro Forma Income Statement for Ideko,2005-2010
The amount of the increase in net working capital (in 000's)for Ideko in 2007 is closest to:
A)$4090.
B)$4685.
C)$3665.
D)$5230.
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Unlock for access to all 49 flashcards in this deck.
Unlock Deck
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23
Use the tables for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010 Pro Forma Balance Sheet for Ideko,2005-2010
If Ideko's future expected growth rate is 5% and its WACC is 9%,then the continuation value (in 000's)in 2010 is closest to:
A)$164,200.
B)$278,775.
C)$280,450.
D)$303,425.
Pro Forma Income Statement for Ideko,2005-2010
Pro Forma Balance Sheet for Ideko,2005-2010 If Ideko's future expected growth rate is 5% and its WACC is 9%,then the continuation value (in 000's)in 2010 is closest to:
A)$164,200.
B)$278,775.
C)$280,450.
D)$303,425.
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Unlock for access to all 49 flashcards in this deck.
Unlock Deck
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24
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 an EBITDA multiple of 8.5,then the continuation enterprise value of Ideko in 2010 is closest to:
A)$152.8 million.
B)$272.8 million.
C)$301.7 million.
D)$181.7 million.
Pro Forma Income Statement for Ideko,2005-2010
Pro Forma Balance Sheet for Ideko,2005-2010 Assuming that Ideko has an EBITDA multiple of 8.5,then the continuation enterprise value of Ideko in 2010 is closest to:
A)$152.8 million.
B)$272.8 million.
C)$301.7 million.
D)$181.7 million.
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Unlock for access to all 49 flashcards in this deck.
Unlock Deck
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25
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
With the proper changes it is believed that Ideko's credit policies will allow for an accounts receivable days of 60.The forecasted accounts receivable (in 000's)for Ideko in 2007 is closest to:
A)$14,525.
B)$16,970.
C)$22,710.
D)$19,690.
Pro Forma Income Statement for Ideko,2005-2010
With the proper changes it is believed that Ideko's credit policies will allow for an accounts receivable days of 60.The forecasted accounts receivable (in 000's)for Ideko in 2007 is closest to:
A)$14,525.
B)$16,970.
C)$22,710.
D)$19,690.
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Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
26
Use the tables for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010 Pro Forma Balance Sheet for Ideko,2005-2010
If Ideko's future expected growth rate is 5%,then the estimated free cash flow (in 000's)for 2011 is closest to:
A)$6568.
B)$11,151.
C)$11,218.
D)$12,137.
Pro Forma Income Statement for Ideko,2005-2010
Pro Forma Balance Sheet for Ideko,2005-2010 If Ideko's future expected growth rate is 5%,then the estimated free cash flow (in 000's)for 2011 is closest to:
A)$6568.
B)$11,151.
C)$11,218.
D)$12,137.
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Unlock for access to all 49 flashcards in this deck.
Unlock Deck
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27
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
Using the income statement above and the following information (in $000's): Calculate Ideko's Free Cash Flow to the Firm and Free Cash Flow to Equity in 2009.
Pro Forma Income Statement for Ideko,2005-2010
Using the income statement above and the following information (in $000's):
Calculate Ideko's Free Cash Flow to the Firm and Free Cash Flow to Equity in 2009. Unlock Deck
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28
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
The amount of net working capital (in 000's)for Ideko in 2006 is closest to:
A)$22,750.
B)$35,195.
C)$30,510.
D)$26,420.
Pro Forma Income Statement for Ideko,2005-2010
The amount of net working capital (in 000's)for Ideko in 2006 is closest to:
A)$22,750.
B)$35,195.
C)$30,510.
D)$26,420.
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Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
29
Use the table for the question(s)below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Oakley is closest to:
A)13.5%.
B)10.2%.
C)9.1%.
D)14.7%.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Oakley is closest to:
A)13.5%.
B)10.2%.
C)9.1%.
D)14.7%.
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Unlock for access to all 49 flashcards in this deck.
Unlock Deck
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30
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
The amount of net working capital (in 000's)for Ideko in 2008 is closest to:
A)$35,195.
B)$26,420.
C)$22,170.
D)$30,510.
Pro Forma Income Statement for Ideko,2005-2010
The amount of net working capital (in 000's)for Ideko in 2008 is closest to:
A)$35,195.
B)$26,420.
C)$22,170.
D)$30,510.
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Unlock for access to all 49 flashcards in this deck.
Unlock Deck
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31
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
Using the income statement above and the following information (in $000's): Calculate Ideko's Free Cash Flow to the Firm and Free Cash Flow to Equity in 2007.
Pro Forma Income Statement for Ideko,2005-2010
Using the income statement above and the following information (in $000's):
Calculate Ideko's Free Cash Flow to the Firm and Free Cash Flow to Equity in 2007. Unlock Deck
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32
Use the table for the question(s)below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
The unlevered beta for Nike is closest to:
A)0.70.
B)1.00.
C)1.50.
D)0.60.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
The unlevered beta for Nike is closest to:
A)0.70.
B)1.00.
C)1.50.
D)0.60.
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33
Use the table for the question(s)below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
The unlevered beta for Luxottica is closest to:
A)1.00.
B)0.60.
C)0.70.
D)1.50.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
The unlevered beta for Luxottica is closest to:
A)1.00.
B)0.60.
C)0.70.
D)1.50.
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Unlock Deck
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34
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 an EBITDA multiple of 8.5,then the continuation equity value of Ideko in 2010 is closest to:
A)$181.7 million.
B)$272.8 million.
C)$152.8 million.
D)$301.7 million.
Pro Forma Income Statement for Ideko,2005-2010
Pro Forma Balance Sheet for Ideko,2005-2010 Assuming that Ideko has an EBITDA multiple of 8.5,then the continuation equity value of Ideko in 2010 is closest to:
A)$181.7 million.
B)$272.8 million.
C)$152.8 million.
D)$301.7 million.
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Unlock for access to all 49 flashcards in this deck.
Unlock Deck
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35
Use the table for the question(s)below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
The unlevered beta for Oakley is closest to:
A)0.70.
B)1.50.
C)1.00.
D)0.60.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
The unlevered beta for Oakley is closest to:
A)0.70.
B)1.50.
C)1.00.
D)0.60.
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
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36
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
With the proper changes it is believed that Ideko's credit policies will allow for an accounts receivable days of 60.The forecasted accounts receivable (in 000's)for Ideko in 2006 is closest to:
A)$19,690.
B)$16,970.
C)$22,710.
D)$14,525.
Pro Forma Income Statement for Ideko,2005-2010
With the proper changes it is believed that Ideko's credit policies will allow for an accounts receivable days of 60.The forecasted accounts receivable (in 000's)for Ideko in 2006 is closest to:
A)$19,690.
B)$16,970.
C)$22,710.
D)$14,525.
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Unlock for access to all 49 flashcards in this deck.
Unlock Deck
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37
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
The amount of net working capital (in 000's)for Ideko in 2007 is closest to:
A)$30,510.
B)$26,420.
C)$22,170.
D)$35,195.
Pro Forma Income Statement for Ideko,2005-2010
The amount of net working capital (in 000's)for Ideko in 2007 is closest to:
A)$30,510.
B)$26,420.
C)$22,170.
D)$35,195.
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
38
Use the table for the question(s)below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Luxottica is closest to:
A)10.2%.
B)13.5%.
C)9.1%.
D)14.7%.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Luxottica is closest to:
A)10.2%.
B)13.5%.
C)9.1%.
D)14.7%.
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Unlock for access to all 49 flashcards in this deck.
Unlock Deck
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39
Use the table for the question(s)below.
Pro Forma Income Statement for Ideko,2005-2010
The amount of the increase in net working capital (in 000's)for Ideko in 2008 is closest to:
A)$4685.
B)$3665.
C)$4090.
D)$5230.
Pro Forma Income Statement for Ideko,2005-2010
The amount of the increase in net working capital (in 000's)for Ideko in 2008 is closest to:
A)$4685.
B)$3665.
C)$4090.
D)$5230.
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
40
Use the table for the question(s)below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Nike is closest to:
A)14.7%.
B)10.2%.
C)9.1%.
D)13.5%.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Nike is closest to:
A)14.7%.
B)10.2%.
C)9.1%.
D)13.5%.
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Unlock for access to all 49 flashcards in this deck.
Unlock Deck
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41
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 an EBITDA multiple of 9.4,then the continuation EV/Sales ratio of Ideko in 2010 is closest to:
A)1.9.
B)1.7.
C)1.6.
D)1.8.
Pro Forma Income Statement for Ideko,2005-2010
Pro Forma Balance Sheet for Ideko,2005-2010 Assuming that Ideko has an EBITDA multiple of 9.4,then the continuation EV/Sales ratio of Ideko in 2010 is closest to:
A)1.9.
B)1.7.
C)1.6.
D)1.8.
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Unlock for access to all 49 flashcards in this deck.
Unlock Deck
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42
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 an EBITDA multiple of 8.5,then the continuation EV/Sales ratio of Ideko in 2010 is closest to:
A)1.7.
B)1.9.
C)1.6.
D)1.8.
Pro Forma Income Statement for Ideko,2005-2010
Pro Forma Balance Sheet for Ideko,2005-2010 Assuming that Ideko has an EBITDA multiple of 8.5,then the continuation EV/Sales ratio of Ideko in 2010 is closest to:
A)1.7.
B)1.9.
C)1.6.
D)1.8.
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Unlock for access to all 49 flashcards in this deck.
Unlock Deck
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43
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 an EBITDA multiple of 9.4,then the continuation equity value of Ideko in 2010 is closest to:
A)$152.8 million.
B)$181.7 million.
C)$301.7 million.
D)$272.8 million.
Pro Forma Income Statement for Ideko,2005-2010
Pro Forma Balance Sheet for Ideko,2005-2010 Assuming that Ideko has an EBITDA multiple of 9.4,then the continuation equity value of Ideko in 2010 is closest to:
A)$152.8 million.
B)$181.7 million.
C)$301.7 million.
D)$272.8 million.
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
44
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 an EBITDA multiple of 9.4,then the continuation enterprise value of Ideko in 2010 is closest to:
A)$181.7 million.
B)$152.8 million.
C)$272.8 million.
D)$301.7 million.
Pro Forma Income Statement for Ideko,2005-2010
Pro Forma Balance Sheet for Ideko,2005-2010 Assuming that Ideko has an EBITDA multiple of 9.4,then the continuation enterprise value of Ideko in 2010 is closest to:
A)$181.7 million.
B)$152.8 million.
C)$272.8 million.
D)$301.7 million.
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
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45
What is the purpose of the sensitivity analysis?
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46
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 an EBITDA multiple of 9.4,then the continuation levered P/E ratio of Ideko in 2010 is closest to:
A)17.2.
B)14.5.
C)19.0.
D)16.4.
Pro Forma Income Statement for Ideko,2005-2010
Pro Forma Balance Sheet for Ideko,2005-2010 Assuming that Ideko has an EBITDA multiple of 9.4,then the continuation levered P/E ratio of Ideko in 2010 is closest to:
A)17.2.
B)14.5.
C)19.0.
D)16.4.
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k this deck
47
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 levered P/E ratio of Ideko in 2010 is closest to:
A)19.0.
B)17.2.
C)16.4.
D)14.5.
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 levered P/E ratio of Ideko in 2010 is closest to:
A)19.0.
B)17.2.
C)16.4.
D)14.5.
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k this deck
48
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 an EBITDA multiple of 8.5,then the continuation unlevered P/E ratio of Ideko in 2010 is closest to:
A)17.6.
B)16.4.
C)14.5.
D)19.0.
Pro Forma Income Statement for Ideko,2005-2010
Pro Forma Balance Sheet for Ideko,2005-2010 Assuming that Ideko has an EBITDA multiple of 8.5,then the continuation unlevered P/E ratio of Ideko in 2010 is closest to:
A)17.6.
B)16.4.
C)14.5.
D)19.0.
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
49
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 an EBITDA multiple of 9.4,then the continuation unlevered P/E ratio of Ideko in 2010 is closest to:
A)17.2.
B)16.4.
C)14.5.
D)19.4.
Pro Forma Income Statement for Ideko,2005-2010
Pro Forma Balance Sheet for Ideko,2005-2010 Assuming that Ideko has an EBITDA multiple of 9.4,then the continuation unlevered P/E ratio of Ideko in 2010 is closest to:
A)17.2.
B)16.4.
C)14.5.
D)19.4.
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
Unlock Deck
k this deck
Unlock Deck
Unlock for access to all 49 flashcards in this deck.
