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	6165
5 Gross Profit	1000		4Total Current Assets	37,322
6 Sales and Marketing	(11,250)		5 Property, Plant, and Equipment	49,500
7 Administrative	(13,500)		6 Goodwill
8EBITDA	16,250		7Total Assets	86,822
9 Depreciation	(5500)		Liabilities and Stockholder's Equity
10EBIT	10,750		8 Accounts Payable	4654
11 Interest Expense (net)	(75)		9 Debt	4500
12 Pretax Income	10,675		10Total Liabilities	9154
13 Income Tax	(3736)		11Stockholder's Equity	77,668
14Net Income	6939		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 EV/Sales ratio of the comparable firms, Ideko's target economic value is closest to:

$165 million

B.

$191 million

C.

$157 million

D.

$155 million