Terrence is an investment banker who is taking Allworld Sports Apparel Inc. public. Allworld has indicated that they will have net income next year (t-1) of $80 million and earnings before interest (EBIT) and tax of $135 million next year. Following the new issue, Allworld will have debt of $900 million, cash of $120 million and 40 million shares outstanding. Terrence needs to calculate a price for the new public issue (IPO) for Allworld and has collected the following information on publicly-traded comparable companies. Based on the P/E multiple, what is Terrence's estimate of price for Allworld? (Show your work and justify your answer) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph v Arial 5 C |||| = = = = E +8 8:0 Company Nike Under Armour Lululemon Gildan X X {;} V 14px 28 P/E forward 32.92 33.87 48.26 15.89 >ITT < R7 KU (+) V - + EV/EBIT forward ABC 33.38 19.58 45.01 15.91 V A V V Ix X Q X : 8.80 QUESTION 2 Based on the EV/EBIT, what is Terrence's estimate of price for Allworld? (show your work and justify your answer). For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph v Arial A EE EEEE X X EXE 38 80 13 T 14px < 57 KD + V : v - +] V A V I 15 HV