Use the tables for the question(s) below.Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation

Year	2005	Year	2005
Income Statement ($ 000)	Balance Sheet ($ 000)
1Sales	75,000	Assets
2 Cost of Goods Sold	1 Cash and Equivalents	12,664
3 Raw Materials	(16,000)	2 Accounts Receivable	18,493
4 Direct Labor Costs	(18,000)	3 Inventories	6,165
5 Gross Profit	1,000	4Total Current Assets	37,322
6 Sales and Marketing	(11,250)	5 Property, Plant, and Equipment	49,500
7 Administrative	(13,500)	6 Goodwill	minus

minusminus

8EBITDA	16,250	7Total Assets	86,822
9 Depreciation	(5,500)	Liabilities and Stockholder's Equity
10EBIT	10,750	8 Accounts Payable	4,654
11 Interest Expense (net)	(75)	9 Debt	4,500
12 Preminus

tax Income	10,675	10Total Liabilities	9,154
13 Income Tax	(3,736)	11Stockholder's Equity	77,668
14Net Income	6,939	12Total Liabilities and Equity	86,822

The following are financial ratios for three comparable companies:

Ratio	Oakley, Inc.	Luxottica Group	Nike, Inc.
P/E	24.8x	28x	18.2x
EV/Sales	2x	2.7x	1.5x
EV/EBITDA	11.6x	14.4x	9.3x
EBITDA/Sales	17.0%	18.5%	15.9

Based upon the average P/E ratio of the comparable firms, Ideko's target market value of equity is closest to:

A.

$155 million

B.

$157 million

C.

$165 million

D.

$193 million