RIO's companys ordinary shares are expected to pay $ 2.4 per share in dividends...
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RIO's companys ordinary shares are expected to pay $ 2.4 per share in dividends for 5 years and after which the dividends are expected to grow at 2.3% annually forever. RIO's shares have a beta of 1.2. The long-term return of ASX200 is 9.6% and the market risk premium is 5%. a.What is the expected return of RIOs shares according to the CAPM? b.What is the implied price per share? a. The expected return of RIOs shares isnothing% (round to 2 d.p) b. The implied price per share is $ nothing (round to 2 d.p.)
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