To complete this homework, you will enter your answers to the questions below on Tab 1 of the M5 Ind Submission Template. Once you have completed Tab 1, you will copy it to Tab 2 (copy range is A1:F48). Once youve copied your answers to Tab 2, you will click on Formulas, then on Show Formulas.

Remember that you are graded on the assignment as well as your accuracy in using the Principles of Spreadsheet Design.

Risk free rate = 0.016 Market rate = 0.136

1. BHPs information is below. Use it and the Two-stage Growth Model to find its intrinsic value. Forecast its cash flows for 2023 through 2025. If its currently selling at $77.57, is it over or under valued?

	2022	2023	2024	2025	2026
Beta	1.05
Dividend	7.00
Growth rates		0.031	0.059	0.059	0.059

2. Rio Tintos average P/E is 9.367. Its current annual earnings per share is $6.65 a share. Find its intrinsic value. If its current price is $81.01, is it over or under valued?
3. The average P/E of FMCs major competitors is 25.033. If its current EPS is $8.75 and its selling for $129.36 a share, is it over or under valued?
4. Heidrick & Struggles has a beta of 0.85 and a fixed dividend. If its current P/E is 11.2, is it over or under valued?
5. Rio Tinto has a variable dividend. Its beta is 1.05, its dividend payout ratio is 0.56, and its growth rate is 8%. Its current P/E is 5.9. Is it over or under valued?