RIO's company's ordinary shares are expected to pay $2.1 per share in dividends for 5 years and after which the dividends are expected to grow at 1.7% annually forever. Company ABC's shares have a beta of 1.8. The long-term return of ASX200 is 8.1% and the market risk premium is 5%.

a. What is the expected return of RIO's shares according to the CAPM?

b. What is the implied price per share?

RIO comanya ordinary share are expected to pay $2.1 per share individende for 5 years and after which the dividends are expected to grow of 1.5 any forever. Conany ABC's aberta oft. There ASX200 Is 8.1% and the market risk premium 5% What is the expected rum of RIO's she according to the CAPM? b. What is the med proper whare? The expected return of Rosaria 2.00 mundo 2 dp Tha implied price per share is found to 2p)