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 11.40%. (Round your answer to 2 decimal places.)

Intrinsic value ......

b. Rio Tintos actual beta is 1.05. (Round your answer to 2 decimal places.)

Intrinsic value ......

c. The market risk premium is 10.60%. (Round your answer to 2 decimal places.)

Intrinsic value ......

Inputs for GE beta mkt_prem rf k_equity term_gwth Value line forecasts of annual dividends Transitional period with slowing dividend growth 1.9 0.08 0.029 0.1810 0.105 Beginning of constant growth period Year 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Dividend Div growth Term value 3.12 3.38 3.64 3.90 4.19 0.0740 4.51 0.0771 4.87 0.0802 5.28 0.0833 5.74 0.0864 6.25 0.0895 6.83 0.0926 7.48 0.0957 8.22 0.0988 9.06 0.1019 10.01 0.1050 11.06 0.1050 E17*(1+ F17)/(B5 - F17) 160.80 Investor CF 3.12 3.38 3.64 3.90 4.19 4.51 4.87 5.28 5.74 6.25 6.83 7.48 8.22 9.06 10.01 171.86 34.91 PV of CF NPV(B5,H2:H17) Inputs for GE beta mkt_prem rf k_equity term_gwth Value line forecasts of annual dividends Transitional period with slowing dividend growth 1.9 0.08 0.029 0.1810 0.105 Beginning of constant growth period Year 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Dividend Div growth Term value 3.12 3.38 3.64 3.90 4.19 0.0740 4.51 0.0771 4.87 0.0802 5.28 0.0833 5.74 0.0864 6.25 0.0895 6.83 0.0926 7.48 0.0957 8.22 0.0988 9.06 0.1019 10.01 0.1050 11.06 0.1050 E17*(1+ F17)/(B5 - F17) 160.80 Investor CF 3.12 3.38 3.64 3.90 4.19 4.51 4.87 5.28 5.74 6.25 6.83 7.48 8.22 9.06 10.01 171.86 34.91 PV of CF NPV(B5,H2:H17)