1. 2. 3. What is the valuation problem here? In what currency are the cash flows denominated? In what currency should the discount rate be denominated? In this case, why doesn't J.P. Morgan discount local cash flows at a local required rate of return? In fact, why not use that approach generally? To complete the estimation of a required rate of return, what other effects should we incorporate into our standard weighted average cost of capital (WACC) and capital asset pricing model formulas? Please estimate required rates of return for the cash flows originating in Argentina, Brazil, and Chile Please estimate a long-term perpetual growth rate for the businesses in Argentina, Brazil, and Chile Based on your answers to questions 4 and 5, and referring to Exhibits 2, 3, and 4, what is a reasonable range of value for Brasil Investimentos' "yellow pages" business? What key assumptions underlie your suggested value range? 4. 5. 6. 1. 2. 3. What is the valuation problem here? In what currency are the cash flows denominated? In what currency should the discount rate be denominated? In this case, why doesn't J.P. Morgan discount local cash flows at a local required rate of return? In fact, why not use that approach generally? To complete the estimation of a required rate of return, what other effects should we incorporate into our standard weighted average cost of capital (WACC) and capital asset pricing model formulas? Please estimate required rates of return for the cash flows originating in Argentina, Brazil, and Chile Please estimate a long-term perpetual growth rate for the businesses in Argentina, Brazil, and Chile Based on your answers to questions 4 and 5, and referring to Exhibits 2, 3, and 4, what is a reasonable range of value for Brasil Investimentos' "yellow pages" business? What key assumptions underlie your suggested value range? 4. 5. 6