B C 1 F G Div growth Term value 1.5 1 Inputs for GE 2 beta 3 mkt_prem 4 rf 5 k_equity 6 term_gwth 7 0.08 0.029 0.1490 0.098 D Year 2019 2020 2021 2022 2023 2024 E Dividend 3.12 3.38 3.64 3.90 4.19 4.51 4.86 0.0740 8 9 H Investor CF 3.12 3.38 3.64 3.90 4.19 4.51 4.86 5.26 5.70 6.19 6.74 7.35 8.03 8.80 9.661 239.02 0.0764 0.0788 0.0812 0.0836 0.0860 0.0884 5.26 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 5.70 6.19 6.74 7.35 8.03 8.80 9.66 10.61 0.0908 0.0932 0.0956 0.0980 0.0980 228.41 10 11 12 Value line 13 forecasts of 14 annual dividends 15 16 17 Transitional period 18 with slowing dividend 19 growth 20 Beginning of constant 21 growth period 22 23 24 25 26 53.24 = PV of CF E17 *(1+ F17)/(B5 - F17) NPV(B5,H2:H17) 00 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. 2 points a. The terminal growth rate will be 10.70%. (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Intrinsic value 61.62 b. Rio Tinto's actual beta is 1.09. (Round your answer to 2 decimal places.) Answer is complete and correct. Intrinsic value s 145.72 c. The market risk premium is 9.90%. (Round your answer to 2 decimal places.) Answer is complete and correct. Intrinsic value 34.72