QUESTION 9 H Ltd is growing at an above average rate. It foresees a growth rate of 20% p.a. in free cash flows to equity holders in the next 4 years. It is likely to fall to 12% in the next 2 years. After that the growth rate is expected to stabilise to 5% p.a. The amount of free cash flows per equity share at the beginning of current year is 10. Find out the maximum price at which an investor, follower of the FCF A.F.M. 7 C.A. Prabodh Nayak [C.A., M.B.A.,C.F.A., P.G.D.T.F.M., C.M.A. (US), C.P.A.] MOUNT CARMEL COLLEGE I.S.D.C. approach, will be prepared to buy the company's shares as on date, assuming an equity capitalization rate of 14%