Answer the following question, please include steps.

Q1

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 Arial V 14px V A EV TX E E E E X2 X2 + ABC A EXE TT {} O ? K 7Terrence 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 shares outstanding. 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 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) Company P/E forward EV/EBIT forward Nike 32.92 33.38 Under Armour 33.87 19.58 Lululemon 48.26 45.01 Gildan 15.89 15.91 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 14px V A V TX . .. E X2 X2 ABC V X (