Question
USE EXCEL TO SOLVE Risk free rate = 0.016 Market rate = 0.136 1. BHPs information is below. Use it and the Two-stage Growth Model
USE EXCEL TO SOLVE 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?
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