Question
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
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? (reproduce Table 19.15), assuming the EBITDA multiple for Ideko remains at9.1 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, $15.3 ?million, will be added to? Ideko's debt in 2010.? Ideko's balance sheet for 2005 is shown here. Ideko's free cash flows through 2010 are shown here (see attachment for charts and questions)
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