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In 2020, the dividend paid by Shell Ltd was $ 4.88. If the required rate of return is 8% and the dividend will grow forever

In 2020, the dividend paid by Shell Ltd was $ 4.88. If the required rate of return is 8% and the dividend will grow forever at 2%

  1. Calculate an estimated value of Shell Ltd.
  1. If the actual early-2021 stock price of Shell traded in the market was $ 79.96, what is your decision as an investor? Are you going to buy this stock or not? Explain.

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Solution a Dividend paid last year 2020 ie D0 488 Dividend growth ... blur-text-image

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