Question 3: The market cap for Mexican Motors is 200 billion pesos. Next year's free cash flow is 8.5 billion pesos. Security analysts are forecasting that free cash flow will grow by 7.5% per year for the next five years. (a) Assume that 7.5% growth rate is expected to continue forever. What rate of return are investors expecting? b) Mexican Motors has generally earned about 12% on book equity (ROE=12%) and reinvested 50% of the earnings. The remaining 50% of earnings has gone to free cash flow