Assuming the projected improvements in working capital

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Reference no: EM131852902

Given the information in the projected income statements and assuming the projected improvements in working capital (that is, Ideko's working capital requirements though 2010 will be as shown here), use EBITDA as a multiple to estimate the continuation value in 2010 (Table 19.15), assuming the EBITDA multiple for Ideko remains at 9.1 times. Infer the EV/sales and the unlevered and levered P/E ratios implied by the continuation value you calculated. Also assume that Ideko's production plant will require an expansion in 2010, and that the cost of this expansion, $15.4 million, will be added to Ideko's debt in 2010. Ideko's balance sheet for 2005 is shown here.

Reference no: EM131852902

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