Royally Dusty Shelf (Shelf) is a petroleum and petrochemicals company. It engages primarily in the exploration, production, and sale of crude oil and natural gas and the manufacture, transportation, and sale or petroleum and petrochemical products. Assume that during the past three years (Years -2, -1, and 0), Shelf generated the following total dividends to common equity shareholders (in USD millions):

	Year -2	Year -1	Year 0
Common dividend payments	$6,708	$7,480	$7,808
Stock repurchases	6,324	4,286	3,387
Total dividends	$13,032	$11,766	$11,195

Analysts project 6.0% growth in earnings over the next five years. Assuming concurrent 6.0% growth in dividends, the following table provides the amounts that analysts project for Shelfs total dividends for each of the next five years. In Year +6, total dividends are projected for Shelf assuming that its income statement and balance sheet will grow at a long-term rate of 4.0% .

	Year +1	Year +2	Year +3	Year +4	Year +5	Year +6
Project ed growth	6.0%	6.0%	6.0%	6.0%	6.0%	4.0%
Project ed total divide nds to comm on equity	$11,867	$12,579	$13,333	$14,133	$14,981	$15,581

At the end of Year 0, Shelf had a market beta of 0.82. At that time, yields on intermediate-term U.S. Treasuries were 3.0% . Assume that the market required a 5.0% risk premium. Suppose Shelf had 7,620 million shares outstanding at the beginning of Year +1.

a. Calculate the required rate of return on equity for Shelf as of the beginning of Year +1. Enter your result as a percentage rounded to two decimal places.

b. Calculate the sum of the present value of total dividends for Years +1 through +5. Enter your results in millions of dollars.

c. Calculate (in millions of dollars):