Question
In 2020, the dividend paid by the Shell Ltd was $ 4.88. If the required rate of return is 8% and dividend will grow forever
In 2020, the dividend paid by the Shell Ltd was $ 4.88. If the required rate of return is 8% and dividend will grow forever at 2%
- Calculate an estimated value of Shell Ltd. (5 marks)
- If the actual early-2021 stock price of Shell traded in the market was $ 79.96, what is your decision as investor? Are you going to buy this stock or not? Explain.
(5 marks)
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Valuation Measuring and managing the values of companies
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
5th edition
978-0470424650, 9780470889930, 470424656, 470889934, 978-047042470
