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Mexican Motors' market cap is 150 billion pesos. Next year's free cash flow is 9.0 billion pesos. Mexican Motors has generally earned about 12% on

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Mexican Motors' market cap is 150 billion pesos. Next year's free cash flow is 9.0 billion pesos. Mexican Motors has generally earned about 12% on book equity (ROE = 12%) and reinvested 40% of earnings. The remaining 60% of earnings has gone to free cash flow. Suppose the company maintains the same ROE and investment rate for the long run. What would be the rate of return? 10.3% 8.2% 10.8% 12% 8.4%

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