International Finance Study Questions

1. 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 in general?
2. Please estimate a long-term perpetual growth rate for businesses in Argentina, Brazil
and Chile.
3. Based on your analysis what is a reasonable range of values for Brasil Investimentos’
yellow pages business using local rates of return and using US rates of return? What
key assumptions underlie your suggested value range.