Question: re 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.



re 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 NS: Beginning FCFE: $80 k-0.09 Growth Rate: Year1-3: 4-6:1 7 and beyond 9% 8% 7% a. Assuming that the current value for the S&P Industrials Index is 4,050, would you underweight, overweight, or market weight the U.S. equity market? Do not round intermediate.calculations. Round your answer to the nearest cent. You should elect b. Assume thunderweight that the red evenweight time period market weight You should select the U.S. equity market as the estimated value of the stock of $ is Select the S&P Industrials Index. rcent increase in the rate of inflation-what would be the market's value, and how would you weight the U.S. market? Assume uld increase from 9% to 10%, decreasing the value. Also assume that the nominal cash flow growth rates would increase for all tage point. Do not round intermediate calculations. Round your answer to the nearest cent. the U.S. equity market as the estimated value of the stock of s Is-Select than the S&P Industrials Index.
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