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Suppose that TechInc consists of a perpetual cash flow of $15M USD that will arrive next year. Assume the risk free rate is 2

Suppose that TechInc consists of a perpetual cash flow of $15M USD that will arrive next year. Assume the risk free rate is 2 percent. Apply the global CAPM to calculate the market value of TechInc if it were to cross-list to gain access to global capital markets. TechInc Local Market World TechInc 1.00 Corr(R,R;) Local 0.75 1.00 World 0.70 0.85 1.00 SD (%) 16 13 12 E(R)(%) ? 10 8

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