7. Kyle is a company with four divisions plus Headquarters, which are expected to generate 5.0bn of EBIT in the coming year as shown in the table below. You have been presented with a valuation of the business on a DCF (discounted cash flow) basis of 40.0bn which equates an EV/EBIT multiple of 8.0x, and you have valued the Men's Wear, Women's Wear and Children's Wear businesses on EBIT multiples of 8.4x, 8.6x and 5.2x, and Headquarters costs at 7.0x, as shown below. Determine the implied multiple of the Accessories business. A B Men's Wear Women's Wear Children's Wear Accessories D Central costs Total Implied Group EV/EBIT C 6.0 7.8 5.3 EBIT (m) % EBIT (m) EV/EBIT 22E 2,200 44% 8.4 1,800 36% 14% E F 7.6 700 7.1 500 -200 5,000 Which of the following is closest to the implied multiple of the Accessories business? I do not want to answer this question 10% -4% 100% 8.6 5.2 ? 7.0 8.0