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please help me to solve this question is urgent Calculate the intrinsic value of Rio Tinto in each of the following scenarios by using the
please help me to solve this question is urgent
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 10.60%. (Round your answer to 2 decimal places.) Intrinsic value b. Rio Tinto's actual beta is 1.08. (Round your answer to 2 decimal places.) Intrinsic value c. The market risk premium is 9.80%. (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 3 with slowing dividend 3 growth O 1 1.6 0.08 0.029 0.1570 0.097 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 3.12 3.38 . 3.64 3.90 4.19 0.0740 4.51 0.0763 4.86 0.0786 5.26 0.0809 5.69 0.0832 6.18 0.0855 6.72 0.0878 7.33 0.0901 8.01 0.0924 8.76 0.0947 9.61 0.0970 10.55 0.0970 E17*(1+F17)/(B5-F17) Term value 192.82 Investor CF P 3.12 3.38 3.64 3.90 4.19 4.51 4.86 5.26 5.69 6.18 6.72 7.33 8.01 8.76 9.61 203.36 45.77 PV of CF NPV(B5,H2:H17) Step by Step Solution
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