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RIO's companys ordinary shares are expected to pay $ 1.4 per share in dividends for 6 years and after which the dividends are expected to

RIO's companys ordinary shares are expected to pay $ 1.4 per share in dividends for 6 years and after which the dividends are expected to grow at 1.4% annually forever. RIO's shares have a beta of 1.5. The long-term return of ASX200 is 8.7% and the market risk premium is 6%.

a.What is the expected return of RIOs shares according to the CAPM?

b.What is the implied price per share?

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