Selena Inc. is a fashion apparel manufacturer that is trading at an EV/EBITDA multiple of 9.0, much higher than the average multiple for the sector. Which of the following best explains why this may be happening? a. Selena Inc. is in a risky emerging market, whereas the comparables are in developed markets. b. Selena Inc. has a much lower return on capital than the compa rable companies.

c.

Selena Inc. pays no taxes but comparable companies pay tax rates that average 30%.

d.

Selena Inc. has much larger reinvestment needs than comparable companies