Mexican Motors' market cap is 350 billion pesos. Next year's free cash flow is 9 8 bilion pesos. Security analysts are forecasting that free cash flow will grow by 80% per year for the next five years a. Assume that the 80% growth rate is expected to continue forever. What rate of retum are investors expecting? Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Rate of retum 5.1. Mexican Motors has genery earned about 11% on book equity (ROE - 11%) and reinvested 50% of eaming maintains the same ROE and investment rate for the long run What will be the growth rate of earnings? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 The remaining 50% of earrings has gone to free cash now. Suppose the company decimal places.) Growth rate b-2. What would be the rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Rate of retum Mexican Motors' market cap is 350 billion pesos. Next year's free cash flow is 9.8 bilion pesos. Security analysts are forecasting that free cash flow will grow by 88% per year for the next five years. a. Assume that the 88% growth rate is expected to continue forever What rate of retum are investors expecting (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Rate of retum b-1. Mexican Motors has generally eamed about 11% on book equity (ROE maintains the same ROE and investment rate for the long run what will be the growth rate of earnings? Do not found intermediate calculations. Enter your answer as a percent rounded to 2 11%) and reinvested 50% of eamings The remaining 50% of earnings has gone to free cash Tow Suppose the company decimal places.) Growth rate 5-2. What would be the rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Rate of retum Mexican Motors market cap is 350 billion pesos. Next year's free cash flow is 9.8 billion pesos. Security analysts are forecasting that tree cash flow will grow by 88 per year for the next five years a. Assume that the 80% growth rate is expected to continue forever. What rate of returnare investors expecting? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places) Rate of retum b-1. Mexican Motors has generally earned about 115 on book equity ROE maintains the same ROE and investment rate for the long run What we be the growth rate of earnings? Do not found intermediate calculations. Enter your answer as a percent rounded 102 11%) and revested 50% of eamings. The remaining 50% of earnings has gone to decimal places.) cash now suppose the company Growth rate b-2. What would be the rate of return? Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Rate of retum References Book & Resources