Problem $9-07$

You are analyzing the U$.$S$.$ equity market based upon the S&P Industrials Index and using the present value of free cash flow to equity technique. Your inputs are as follows:

Beginning FCFE: $$100$

$k=0\mathrm{.}12$

your answer to the nearest cent.

You should underweight $0$ the U$.$S$.$ equity market as the estimated value of the stock of $

is lower than $0$ the S&P Industrials Index.

Round your answer to the nearest cent.

You should underweight at the U$.$S$.$ equity market as the estimated value of the stock of $

is lower than $0$ than the S&P Industrials Index.