What rate of return are investors expecting

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Reference no: EM131190826

Mexican Motors’ market cap is 600 billion pesos. Next year’s free cash flow is 9.0 billion pesos. Security analysts are forecasting that free cash flow will grow by 8.0% per year for the next five years. a. Assume that the 8.0% growth rate is expected to continue forever. What rate of return are investors expecting? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Reference no: EM131190826

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