You run a Multinational Corporation and you are looking at buying a company in Japan which possesses a current free cash flow of $150 Million growing at 9% each year. How much would you pay for this company?
Use the Capital Asset Pricing Model (CAPM), determine the Weighted Average Cost of Capital (WACC) and then discount the free cash flows that you will determine after applying the growth.
Examine the 10k annual report and use the Capital Asset Pricing Model to Calculate the Weighted Average Cost of Capital.
10K annual report data:
https://www.sec.gov/Archives/edgar/data/21344/000002134416000050/a2015123110-k.htm
Along with the calculation need a 400-word report on the same?