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PAGINAS AMERALS Replicate the calculation of the forecasted exchange rates and forecasted free cash flows in US dollars for Argentina, Brazil and Chile.A Please estimate
PAGINAS AMERALS
- Replicate the calculation of the forecasted exchange rates and forecasted free cash flows in US dollars for Argentina, Brazil and Chile.A
- Please estimate required rates of return (WACC) for the cash flows originating in Argentina, Brazil, and Chile from a local perspective and from a US $ perspective.
- In this case, why doesn't J.P. Morgan discount local cash flows at a local required rate of return?In fact, why not use that approach in general?
- Please estimate a long-term perpetual growth rate for businesses in Argentina, Brazil and Chile.
- Based on your analysis what is a reasonable range of values forBrasilInvestimentos' yellow pages business using local rates of return and using US rates of return?What key assumptions underlie your suggested valuerange.
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