Calculate the continuation value of KMS using your reproduction of Table 18.8 from Problem 14, and assuming an EBITDA multiple of8.5.

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Year Income Statement ($000s) Sales Costs Except Depreciation EBITDA Depreciation EBIT Interest Expense (net) Pretax Income Income Tax Net Income 2010 2011 2012 2013 2014 2015 74,889 88,39 103,247 119,793 138,167 158,546 58,41368,92880,533-93,438 107,770 123,666 16,476 9,4422,71426,354 30,39734,880 5,4927,4437,4987,5497,594-7,634 10,984 11,998 15,216 18,806 22,803 27,246 306 | -306 | _ 1,666-1,666 | -1,666| -1,666 10,678 11,692 13,55017,14021,137 25,580 3,7374,04,742-5,9997,3988,953 6,941 7,600 8,807 11,141 13,739 16,627