(Answered) Cj banks is a clothing firm with holdings in both the

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CJ banks is a clothing firm with holdings in both the manufacturing and retail sectors. The firm has a cost of capital of 10% and it is a stable growth firm that expects to see after tax operating income grow 5% a year in the long term. If the firm earns a return on capital of 12.5%, and faces a 30% tax rate, please estimate the value/EBIT multiple for this firm.

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