- Return To Question Calculate The Intrinsic Value Of Rio Tinto In Each Of The Following Scenarios By Using The Three Stag 1 (69.86 KiB) Viewed 28 times
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Return to question Calculate the intrinsic value of Rio Tinto in each of the following scenarios by using the three-stage growth model of Spreadsheet 18.1. Treat each scenario independently. a. The terminal growth rate will be 11.20%. (Round your answer to 2 decimal places.) X Answer is complete but not entirely correct. Intrinsic value $ 36.04 X
< JI J A B С D E F G H I 1 Inputs for GE Year Dividend Div growth Term value Investor CF 2 beta 1.9 2019 3. 12 3. 12 3 mkt_prem 0.08 2020 3. 38 3. 38 4 rf 0.029 2021 3. 64 3. 64 5 k_equity 0.1810 2022 3. 90 3. 90 6 term_gwth 0.103 2023 4. 19 0.0740 4. 19 7 2024 4.51 0.0769 4. 51 8 2025 4.87 0.0798 4. 87 9 2026 5. 27 0.0827 5. 27 10 2027 5. 72 0.0856 5. 72 11 2028 6. 23 0.0885 6.23 12 Value line 2029 6.80 0.0914 6.80 13 forecasts of 2030 7. 44 0.0943 7. 44 14 annual dividends 2031 8. 17 0.0972 8. 17 15 2032 8.98 0.1001 8. 98 16 2033 9. 91 0.1030 9.91 17 Transitional period 2034 10.93 0. 1030 154. 55 165.48 18 with slowing dividend 19 growth 34. 43 PV of CF 20 Beginning of constant E17 * (1+ F17)/(B5 - F17) 21 growth period NPV (B5, H2:H17) 22 23 21