BS Inc. is expected to generate net income of $75 million next year and will pay $5 million in after-tax interest expense next year. The company is expected to reinvest 80% of its after-tax operating earnings and will have return on capital (ROC) equal to 10% in perpetuity. The weighted-average cost of capital for BS Inc. is 10%. Given this information, what is BS Inc.'s forward ( EV EBIT 1 ( 1 T C ) ) ratio equal to?

In case the ratio does not appear on your screen here is a text-only version: EV/EBIT₁(1-T_C).

Group of answer choices

4.

10.

8.

5.