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 6.00%. (Round your answer to 2 decimal places.) b. Rio Tintos actual beta is 1.00. (Round your answer to 2 decimal places.) c. The market risk premium is 9.00%. (Round your answer to 2 decimal places.)

Year Dividend Div growth Term value 1.3 3.14 2019 2020 Inputs for GE beta mkt_prem rf k_equity term_gwth Investor CF 3.14 3.39 3.65 0.08 0.029 3.39 3.65 2021 0.1330 2022 3.90 3.90 4.19 0.060 2023 2024 4.19 4.49 0.0740 0.0726 2025 4.81 0.0712 4.49 4.81 5.15 0.0698 2026 2027 2028 5.15 5.50 5.87 6.25 5.50 5.87 6.25 6.66 2029 0.0684 0.0670 0.0656 0.0642 0.0628 Value line forecasts of annual dividends 2030 2031 6.66 7.07 7.51 7.07 2032 0.0614 7.51 2033 2034 7.96 8.44 0.0600 0.0600 7.96 130.93 122.50 Transitional period with slowing dividend growth Beginning of constant growth period 46.78 = PV of CF . E17 * (1+ F17)/(B5 - F17) NPV(B5,H2:H17) Year Dividend Div growth Term value 1.3 3.14 2019 2020 Inputs for GE beta mkt_prem rf k_equity term_gwth Investor CF 3.14 3.39 3.65 0.08 0.029 3.39 3.65 2021 0.1330 2022 3.90 3.90 4.19 0.060 2023 2024 4.19 4.49 0.0740 0.0726 2025 4.81 0.0712 4.49 4.81 5.15 0.0698 2026 2027 2028 5.15 5.50 5.87 6.25 5.50 5.87 6.25 6.66 2029 0.0684 0.0670 0.0656 0.0642 0.0628 Value line forecasts of annual dividends 2030 2031 6.66 7.07 7.51 7.07 2032 0.0614 7.51 2033 2034 7.96 8.44 0.0600 0.0600 7.96 130.93 122.50 Transitional period with slowing dividend growth Beginning of constant growth period 46.78 = PV of CF . E17 * (1+ F17)/(B5 - F17) NPV(B5,H2:H17)