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Question: Calculate the Value / EBIT multiple for a company with the following financial characteristics.

Growth: 5% per year forever

ROIC: 20% return on invested capital.

Operating cash tax rate: 35%

WACC: 10%

Construct a 2 way table with growth on the vertical axis varying from 3% to 8% in 1% increments and ROIC on the horizontal axis varying from 8% to 20% in 2% increments.

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  • Category:- Basic Finance
  • Reference No.:- M92789297

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