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Dear John,
For Staple View, the free cash flow valuation to equity is calculated using a growth rate of 4%. But that is the growth rate of the investment levels. Aren’t we suppose to use the growth rate of the free cash flow?
Or we assume that growth rate of investment levels equal to the growth rate of FCF?
But the question says “a growth rate of 4% in operating profits and cash flows”
Oops, I missed out that line. Sorry John for asking this stupid question, I will be more careful next time.
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