5. You are valuingmultiple steady-state companies in the same industry. CompanyAis projected to earn $160 million in EBITAnext year, growat 2 percent per year, and generate ROICs equal to 15 percent. Company B is projected to earn $160 million in EBITAnext year, grow at 6 percent per year, and generate ROICs equal to 10 percent. Both companies have an operating tax rate of 25 percent and a cost of capital of 10 percent. What are the enterprisevalue-

to-EBITA multiples for both companies? Does higher growth lead to a higher multiple in this case?