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 6%. (Round your answer to 2 decimal places.)

Intrinsic value:

b. Rio Tintos actual beta is 1.2. (Round your answer to 2 decimal places.) Intrinsic value:

c. The market risk premium is 7.5%. (Round your answer to 2 decimal places.)

Intrinsic value:

Div growth Term value Inputs for GE beta mkt prem rf k_equity term_gwth 1.3 0.08 0.029 0.1330 0.050 Year 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Dividend 3.12 3.38 3.64 3.90 4.19 4.49 4.80 5.12 5.45 5.79 6.13 6.48 6.84 7.20 7.56 7.93 0.0740 0.0716 0.0692 0.0668 0.0644 0.0620 0.0596 0.0572 0.0548 0.0524 0.0500 0.0500 Investor CF 3.12 3.38 3.64 3.90 4.19 4.49 4.80 5.12 5.45 5.79 6.13 6.48 6.84 7.20 7.56 108.31 Value line forecasts of annual dividends 100.37 Transitional period with slowing dividend growth Beginning of constant growth period 43.39 = PV of CF E17 *(1+F17V(B5 - F17) NPV(B5, H2:H17)