28. Valuing a business (S4.6) Mexican Motors market cap is 200 billion pesos. Next years free cash...

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28. Valuing a business (S4.6) Mexican Motors’ market cap is 200 billion pesos. Next year’s free cash flow is 8.5 billion pesos. Security analysts are forecasting that free cash flow will grow by 7.5% per year for the next five years.

a. Assume that the 7.5% growth rate is expected to continue forever. What rate of return are investors expecting?

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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Question Posted: Jul 31, 2024 02:01 AM

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28. Valuing a business (S4.6) Mexican Motors market cap is 200 billion pesos. Next years free cash...

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Principles Of Corporate Finance

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