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RIO's companys ordinary shares are expected to pay $2.5 per share in dividends for 3 years and after which the dividends are expected to grow
RIO's companys ordinary shares are expected to pay $2.5 per share in dividends for 3 years and after which the dividends are expected to grow at 1.9% annually forever. RIO's shares have a beta of 1.2 . The long-term return of ASX200 is 8.1% 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? Question content area bottom Part 1 a. The expected return of RIOs shares is
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