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Your task Part A: To carry out an analysis, you will need to calculate the appropriate Weighted Average Cost of Capital (WACC). Rio Tinto executive

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Your task Part A: To carry out an analysis, you will need to calculate the appropriate Weighted Average Cost of Capital (WACC). Rio Tinto executive management team are particularly concerned that the WACC be accurate, thus you are expected to determine the WACC based on recent market and other data. (Read below for additional information). Part B: Carry out a detailed analysis of the two given options and make recommendations to Rio Tinto about those options. To establish the WACC you have already assembled the following information . Previous year's stock exchange data for the market (ASX200) and for Rio Tinto, adjusted for dividends and capitalization (Price Index). This data is organized in the file: Project Data.xlsx. Use this dataset to calculate beta. For CAPM purposes use the return on the market (%) provided in the next

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