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1. Rio Tinto has $300 million capital, of which, 40% is contributed by equity holders. Shareholders' required rate of return is 11% p.a. Creditors charge

1. Rio Tinto has $300 million capital, of which, 40% is contributed by equity holders. Shareholders' required rate of return is 11% p.a. Creditors charge 6% p.a. interest. Rio Tinto's Weighted Average Cost of Capital is

2.You are considering the following investment opportunity: Starting 3 years from today, you will receive $1500 each year for

6years. If the market interest rate is 8%, calculate the present value of this investment

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