Avalon Inc. is a high growth publicly traded firm that is expected to become a stable growth firm after 5 years. You have estimated an expected after-tax operating income of $60 million in year 6 and believe that the firm will generate a return on capital of 12% in perpetuity. If the cost of capital is 10% and the expected growth rate in perpetuity after year 5 is 3%, what will the terminal value be at the end of year 5

Suppose that the u.s. dollars-mexican pesos exchange rate is fixed by the u.s. and mexican governments. assume also that labor is mobile between the united states and mexico due to low transportation costs.which of the following situations is likely to happen as a result of a simultaneous increase in the demand for u.s. goods and decrease in the demand for mexican goods? (pick mexican unemployment rate increases, and the country undergoes bad economic times for a sustained u.s. unemployment rate increases, and the country undergoes bad economic times for a sustained mexican unemployment rate rises at first, but it soon drops as unemployed mexicans move to the united states for mexican unemployment rate rises at first, but then it drops as mexican pesos depreciate against u.s. dollars.