A steel producer and an IT company

(a) A steel producer has 20 mt of capacity at 85% utilisation, realisation ₹55,000 a tonne and cash cost ₹45,000 (illustrative). Compute EBITDA, the EBITDA after a 5% fall in realisation (cost fixed), and EBITDA on a mid-cycle ₹8,000 a tonne. Value the business at 6× mid-cycle EBITDA. (b) Prove (6A.22) and explain why a P/E of 5 on this year's earnings can be expensive. (c) An IT company's USD revenue grew 3.0% quarter on quarter; 30% of revenue is in EUR and GBP, which fell 2% against the USD. Compute constant-currency growth. If USDINR moved from 95.0 to 96.5, compute INR revenue growth (illustrative rates).