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What is the expected return of? rio

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Reference no: EM133111305

?RIO's ? company's ordinary shares are expected to pay? $1.4 per share in dividends for 6 years and after which the dividends are expected to grow at 2?% annually forever.? RIO's shares have a beta of1.1.

The? long-term return of ASX200 is 9.8?% and the market risk premium is 6?%.

a.What is the expected return of? RIO's shares according to the? CAPM?

b.What is the implied price per? share?

Reference no: EM133111305

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