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If the firm earns a return on capital of 125 and faces a 30

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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Finance Basics: If the firm earns a return on capital of 125 and faces a 30

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Finance Basics: If the firm earns a return on capital of 125 and faces a 30

Reference No:- TGS01390373

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