Your task involves share analysis for Berkshire Hathaway. Today, Berkshire Hathaway is considering setting...

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Finance

Your task involves share analysis for Berkshire Hathaway.
Today, Berkshire Hathaway is considering setting aside capital to invest in either...
BHP is expected to pay a next dividend of $0.40/share
Rio Tinto is expected to pay a next dividend of $0.20/share growing by 3% p.a. into perpetuity.
The holding period of the shares in indefinite and the fund's WACC is 8%.
The value of BHP today is: Blank 1 Question 5
The value of Rio today is: Blank 2 Question 5
Which has a higher value today?:

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