Question 7 (4 points) Eveline Limited, a stable growth company, just announced the results for the 6- months ended June 30, 2021. Set out below is a summary of its EBIT: $Amounts in million 12-months ended Dec 31, 2020 $250 6-months ended Jun 30, 2021 $162 6-months ended Jun 30, 2020 $156 As of June 30, 2021, the firm had an outstanding bond of $145 million (market value) and cash balances of $83 million. Its stock is trading at $18.25 per share, with a total of 100 million shares outstanding. The tax rate is 40%. a. Derive the EV/EBIT TTM multiple. (2 points) b. Assuming a constant growth rate of 4% going forward and a sustainable ROIC of 12%, what is the WACC as implied by the current market values of the firm's shares and bonds? (2 points) Question 7 (4 points) Eveline Limited, a stable growth company, just announced the results for the 6- months ended June 30, 2021. Set out below is a summary of its EBIT: $Amounts in million 12-months ended Dec 31, 2020 $250 6-months ended Jun 30, 2021 $162 6-months ended Jun 30, 2020 $156 As of June 30, 2021, the firm had an outstanding bond of $145 million (market value) and cash balances of $83 million. Its stock is trading at $18.25 per share, with a total of 100 million shares outstanding. The tax rate is 40%. a. Derive the EV/EBIT TTM multiple. (2 points) b. Assuming a constant growth rate of 4% going forward and a sustainable ROIC of 12%, what is the WACC as implied by the current market values of the firm's shares and bonds? (2 points)