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 11.10%. (Round your answer to 2 decimal places.) Intrinsic value b. Rio Tinto's actual beta is 1.02. (Round your answer to 2 decimal places.) Intrinsic value ees c. The market risk premium is 10.30%. (Round your answer to 2 decimal places.) Intrinsic value Spreadsheet_18.14.xlsx File Edit Insert Format Help Calibri 11 - BI U $ A- T M J K L M A B D E F G H Year Inputs for GE Dividend Div growth Term value Investor CF beta 1.8 2019 3.12 3.12 mkt_prem 0.08 2020 3.38 3.38 rf 0.029 2021 3.64 3.64 k_equity 0.1730 2022 3.90 3.90 term_gwth 0.102 2023 4.19 0.0740 4.19 2024 4.51 0.0768 4.51 3 2025 4.87 0.0796 4.87 2026 5.27 0.0824 5.27 0 2027 5.72 0.0852 5.72 1 2028 6.22 0.0880 6.22 2 Value line 2029 6.79 0.0908 6.79 13 forecasts of 2030 7.42 0.0936 7.42 14 annual dividends 2031 8.14 0.0964 8.14 15 2032 8.95 0.0992 8.95 16 2033 9.86 0.1020 9.86 17 Transitional period 2034 10.86 0.1020 168.63 179.49 18 with slowing dividend growth 37.86 = PV of CF 20 Beginning of constant E17 (1+ F17)/(B5 - F117) 21 growth period NPV(B5,H2:17) SOGG 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 11.10%. (Round your answer to 2 decimal places.) Intrinsic value b. Rio Tinto's actual beta is 1.02. (Round your answer to 2 decimal places.) Intrinsic value ees c. The market risk premium is 10.30%. (Round your answer to 2 decimal places.) Intrinsic value Spreadsheet_18.14.xlsx File Edit Insert Format Help Calibri 11 - BI U $ A- T M J K L M A B D E F G H Year Inputs for GE Dividend Div growth Term value Investor CF beta 1.8 2019 3.12 3.12 mkt_prem 0.08 2020 3.38 3.38 rf 0.029 2021 3.64 3.64 k_equity 0.1730 2022 3.90 3.90 term_gwth 0.102 2023 4.19 0.0740 4.19 2024 4.51 0.0768 4.51 3 2025 4.87 0.0796 4.87 2026 5.27 0.0824 5.27 0 2027 5.72 0.0852 5.72 1 2028 6.22 0.0880 6.22 2 Value line 2029 6.79 0.0908 6.79 13 forecasts of 2030 7.42 0.0936 7.42 14 annual dividends 2031 8.14 0.0964 8.14 15 2032 8.95 0.0992 8.95 16 2033 9.86 0.1020 9.86 17 Transitional period 2034 10.86 0.1020 168.63 179.49 18 with slowing dividend growth 37.86 = PV of CF 20 Beginning of constant E17 (1+ F17)/(B5 - F117) 21 growth period NPV(B5,H2:17) SOGG
