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Assume that Lear (the company you analyzed in Question 10) decides to acquire an independent financial services company in order to establish a credit division
Assume that Lear (the company you analyzed in Question 10) decides to acquire an independent financial services company in order to establish a credit division for Lear (which will allow customers to take loans to finance purchases of Lear products). Lear projects that the financial services company can generate FCF=$50M next year (i.e., Year 1), and that the subsequent annual FCFs will be growing by 2% every year, forever. What is the maximum price Lear should be willing to pay for the financial services company
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