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6. Calculate the intrinsic value of Rio Tinto in each of the following scenarios by using the three-stage growth model of Spreadsheet 18.1. Treat each
6. Calculate the intrinsic value of Rio Tinto in each of the following scenarios by using the three-stage growth model of Spreadsheet 18.1. Treat each scenario independently. a. The terminal growth rate will be 10.80%. (Round your answer to 2 decimal places.) Intrinsic value
b. Rio Tintos actual beta is 1.01. (Round your answer to 2 decimal places.) Intrinsic value
c. The market risk premium is 10.00%. (Round your answer to 2 decimal places.)
Intrinsic value
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