Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please solve the following Cause the intrinsic value of Rio Tinto in each of the following scenarios by using the three-stage growth model of Spreadsheet

please solve the following
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Cause 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.) b. Rio Tinto's actual beta is 1.08. (Round your answer to 2 decimal places.) Intric value c. The market risk premium is 9.80%. (Round your answer to 2 decimal places.) Intrinsic value 0.1570 Dividend Div growth Term value 3.12 3.38 164 3.90 0.0740 4.51 0.0763 4.86 0.0786 5.26 0.0809 5.69 0.0832 6.18 0.0055 6.72 0.0078 7.33 0.0901 8.01 0.0924 8.76 0.0947 9.61 0.0970 10.55 0.0970 E17 (1+F17/(85-F17) 2019 2030 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 17 VW tine 13 forecasts of 14ual dividends 17 Transitional period 18 with dowing dividend 20 Beginning of constant growth period 32 Sprd 18.1 + Ready Accessibility: Investigate 192.82 Investor CF T 3.12 3.38 3.64 1.90 4.19 4.51 4.86 5.26 5.69 6.18 6.72 7.33 8.01 8.76 9.61 203.36 4 45.77 PV of CF NPV(B5,H2H17) L M N E ET 0 Calculate the intrinsic value of Rio Tinto in each of the following scenarios by using the three-stage growth model of Spreadsheet 18.1. reat each scenario independently. . 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 C6 A 1 Inputs for GE 2 beta 3 mkt prem 4 rf 5 k equity 6 term gwth 11 12 Valueline 13 forecasts of 14 annual dividends period 18 with slowing dividend 19 growth > Sprd 18.1 + Ready HEHEHEHEH 10 15 16 20 21 22 x fx B 1.6 0.08 0.029 0.1570 0.097 C Beginning of constant growth period E D Year 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Accessibility: Investigate F > E 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+F1785-F17) IM H Term value + 192.82 Number T Investor CF 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 NPVBS,H2 H17) 3 Cell Styles K M Celle N Editing O LEN Analyze Q 100% Cause 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.) b. Rio Tinto's actual beta is 1.08. (Round your answer to 2 decimal places.) Intric value c. The market risk premium is 9.80%. (Round your answer to 2 decimal places.) Intrinsic value 0.1570 Dividend Div growth Term value 3.12 3.38 164 3.90 0.0740 4.51 0.0763 4.86 0.0786 5.26 0.0809 5.69 0.0832 6.18 0.0055 6.72 0.0078 7.33 0.0901 8.01 0.0924 8.76 0.0947 9.61 0.0970 10.55 0.0970 E17 (1+F17/(85-F17) 2019 2030 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 17 VW tine 13 forecasts of 14ual dividends 17 Transitional period 18 with dowing dividend 20 Beginning of constant growth period 32 Sprd 18.1 + Ready Accessibility: Investigate 192.82 Investor CF T 3.12 3.38 3.64 1.90 4.19 4.51 4.86 5.26 5.69 6.18 6.72 7.33 8.01 8.76 9.61 203.36 4 45.77 PV of CF NPV(B5,H2H17) L M N E ET 0 Calculate the intrinsic value of Rio Tinto in each of the following scenarios by using the three-stage growth model of Spreadsheet 18.1. reat each scenario independently. . 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 C6 A 1 Inputs for GE 2 beta 3 mkt prem 4 rf 5 k equity 6 term gwth 11 12 Valueline 13 forecasts of 14 annual dividends period 18 with slowing dividend 19 growth > Sprd 18.1 + Ready HEHEHEHEH 10 15 16 20 21 22 x fx B 1.6 0.08 0.029 0.1570 0.097 C Beginning of constant growth period E D Year 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Accessibility: Investigate F > E 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+F1785-F17) IM H Term value + 192.82 Number T Investor CF 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 NPVBS,H2 H17) 3 Cell Styles K M Celle N Editing O LEN Analyze Q 100%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Private Equity Value Creation Analysis Volume I

Authors: Michael David Reinard

1st Edition

1736077821, 978-1736077825

More Books

Students also viewed these Finance questions

Question

Explain what forgiveness is and is not

Answered: 1 week ago