1. BHP has a beta of 0.88. Government bonds are yielding 2.5%. The All Ords is...

 

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1. BHP has a beta of 0.88. Government bonds are yielding 2.5%. The All Ords is returning 12% Calculate the expected return of BHP. (enter your answer without % to 2 decimal places) 2. If the E(R) of BHP were to increase, what impact would that have on the value of BHP shares and it's share price? The E(R) of BHP could increase due to an (increase or decrease) in the risk of the company. This would in turn cause the value of BHP shares to (fall or rise), and place (downward or upward) pressure on the share price of BHP. 3. The next dividend BHP is expected to pay a $3 dividend per share. With a beta of 0.88, the All www Ords returning 12% and government bonds yielding 2.5%, what is the value and implied price of the share? (enter your answer without $ to 2 decimal places) wwwwwwww 4. The next dividend BHP is expected to pay a $3 dividend per share, which is expected to grow at 2% p.a. into perpetuity. With a beta of 0.88, the All Ords returning 12% and government bonds yielding 2.5%, what is the value and implied price of the share? (enter your answer without $ to 2 decimal places) 5. BHP has 100 million shares outstanding and has total earnings of $800 million. Each BHP share is $32. Calculate the PE ratio of BHP. 6. Rio Tinto has 10 million shares outstanding and has total earnings of $40 million. Each Rio share is $20. Calculate the PE ratio of Rio. 7. BHP shares are more expensive than Rio shares. 1. BHP has a beta of 0.88. Government bonds are yielding 2.5%. The All Ords is returning 12% Calculate the expected return of BHP. (enter your answer without % to 2 decimal places) 2. If the E(R) of BHP were to increase, what impact would that have on the value of BHP shares and it's share price? The E(R) of BHP could increase due to an (increase or decrease) in the risk of the company. This would in turn cause the value of BHP shares to (fall or rise), and place (downward or upward) pressure on the share price of BHP. 3. The next dividend BHP is expected to pay a $3 dividend per share. With a beta of 0.88, the All www Ords returning 12% and government bonds yielding 2.5%, what is the value and implied price of the share? (enter your answer without $ to 2 decimal places) wwwwwwww 4. The next dividend BHP is expected to pay a $3 dividend per share, which is expected to grow at 2% p.a. into perpetuity. With a beta of 0.88, the All Ords returning 12% and government bonds yielding 2.5%, what is the value and implied price of the share? (enter your answer without $ to 2 decimal places) 5. BHP has 100 million shares outstanding and has total earnings of $800 million. Each BHP share is $32. Calculate the PE ratio of BHP. 6. Rio Tinto has 10 million shares outstanding and has total earnings of $40 million. Each Rio share is $20. Calculate the PE ratio of Rio. 7. BHP shares are more expensive than Rio shares.