Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Company name: RIO TINTO LIMITED Ticker: RIO The stock should have at least 4 years of dividend payments. stock information as below Current Price:

1.

Company name: RIO TINTO LIMITED

Ticker: RIO

The stock should have at least 4 years of dividend payments.

stock information as below

Current Price: Au$90.74

Market capitalization:UK63.648b

Daily volume

number of ordinary securities published on ASX

most recent dividend

Annual dividend yield

P/E ratio:

EPS

A brief description of the company's business: Diversified Metals and Mining

Attached stock market website: https://simplywall.st/stocks/au/materials/chia-rio/rio-tinto-group-shares?fbclid=IwAR39TGG9GbONrC8Zi-RaWzYKWyZUO9YswmPmJh1TAt4xbu3XpysTzic8HjI#information

2. Collect the last 4 years dividend payment information and estimate the dividend growth rate for each year and use the Gordon model to estimate the annual rate of return on the stock. 04

3. Check the most recent announcement of your chosen company and analyse information content of that announcement. Which date the news was released? Do you consider the new information as "good news", or "bad news" for the market investors? Why? Did the share price move up on good news and down on bad news or was the pattern more mixed? (Companies often try to release bad news when the stock market is closed, to reduce negative impacts on share prices). You can look for the changes in share price in yahoo finance (https://au.finance.yahoo.com). 02+04

4. Download the weekly share prices of your chosen company for the last 4 years and ASX 200 index data for the same period from the yahoo finance.com (https://au.finance.yahoo.com). Then compute returns of the shares (returnt = (Pt - Pt1)/Pt-1 ). Calculate the mean, standard deviation and coefficient of variation of returns for the share using the data you have collected for your chosen company. Calculate beta by regressing the share's returns on the returns to the index chosen. 04+04+04+04

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost-Benefit Analysis For Public Sector Decision Makers

Authors: Diana Fuguitt

1st Edition

1567202225, 9781567202229

More Books

Students also viewed these Accounting questions

Question

What reward will you give yourself when you achieve this?

Answered: 1 week ago