What is the expected return of? rio shares

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RIO's ? company's ordinary shares are expected to pay? $1.4 per share in dividends for 4 years and after which the dividends are expected to grow at 1.1?% annually forever. Company? ABC's shares have a beta of 1.5. The? long-term return of ASX200 is 8.5?% and the market risk premium is 4?%.

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

b. What is the implied price per? share?

Reference no: EM132499532

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