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32 The following data apply to the next three questions. Mark Wiley & Sons, Inc. is considering a sale of its publishing division. The division

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The following data apply to the next three questions. Mark Wiley & Sons, Inc. is considering a sale of its publishing division. The division had earnings before interest, taxes, depreciation. and amortization (EBITDA) of $ 1,100 million in the most recent year (depreciation was $ 300 million), growing at an estimated 5% a year (You can assume that depreciation grows at the same rate). The return on equity capital (ROE) in the division is 15%, and the corporate tax rate is 40%. The cost of capital (COC) for the division is 10% 32 of 40 What is your estimate to the division's Value/EBIT multiple? O A 6x OB. 7x O C. 8x OD. 9x O E. None of the above Unsure

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