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5. MONDRA S.A. is a new company that operates in the tourism sector that has a chain of cottages in the north of Spain. Due

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5. MONDRA S.A. is a new company that operates in the tourism sector that has a chain of cottages in the north of Spain. Due to the economic crisis the company has increased its benefits because customers prefer cheaper domestic destinations rather than travelling international. The company expects to maintain its benefits high for the next 5 years until the economic environment takes off again. In the current year, MONDRA S.A. has offered a return to its shareholders equal to 30%, well above their required rate of return, which is 20%. The company expects its ROE to decrease 2 percentage points each year during the next 5 years because of the competition in the sector. The dividend pay-out ratio will remain constant at 20%. The company has 5M euros in equity. Determine the value of the firm considering that this period of expansion in the sector will only last for 5 years

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