Mexican motorsrsquo market cap is 600 billion pesos next


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.)

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Financial Management: Mexican motorsrsquo market cap is 600 billion pesos next
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