You are valuing multiple steady-state companies in the same industry. Company A is projected to earn $160 million in EBITA next year, grow at 2% per year, and generate ROICS equal to 15%. Company B earned $130 million last year and is projected to earn $160 million in EBITA next year, grow at 6% per year, and generate ROICS equal to 10%. Both companies have an operating tax rate of 25% and a cost of capital of 10%. What are the enterprise- value-to-EBITA multiples for both companies? Does higher growth lead to a higher multiple in this case? (15 marks) Value (1-T)(1-ROIC) EBITA WACC - g From the perspective of the Performance Management, what are the two categories of long-term value drivers? (Hint: Think of the Value Driver Tree)