RIO's company’s ordinary shares are expected to pay $ per share in dividends for years and after which the dividends are expected to grow at % annually forever. Company ABC's shares have a beta of . The long-term return of ASX200 is % and the ma
RIO's company’s ordinary shares are expected to pay $ per share in dividends for years and after which the dividends are expected to grow at % annually forever. Company ABC's shares have a beta of .
The long-term return of ASX200 is % and the market risk premium is %.
a.What is the expected return of RIO’s shares according to the CAPM?
b.What is the implied price per share?
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