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 Calculate an estimated value of Shell Ltd 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...

Solution a Dividend paid last year 2020 ie D0 488 Dividend growth ...

In 2020, the dividend paid by Shell Ltd was $ 4.88. If the required rate of return

Fantastic news! We've Found the answer you've been seeking!

Question:

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%

Calculate an estimated value of Shell Ltd.

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.

Related Book For answer-question

Statistical Inference

ISBN: 978-0534243128

2nd edition

Authors: George Casella, Roger L. Berger

See More Books

Posted Date: Jan 03, 2021 08:31 PM

See More Questions

At 8 percent interest, how long does it take to double your money? To quadruple it?
A star is 35pc away. How long does it take for its light to reach us?
How long does it take for an account containing $8000 to be worth $15,000 if the money is invested at 9% compounded monthly?
MAX DIVISOR TREE Let a tree exists with the root value N. The property of this tree is that each of its nodes branches out to the nodes with a value equal to one of its divisors (except 1 and the...
Customers arriving at a service centre are assigned one of three categories (1, 2, and 3); category 1 is the highest priority. Records indicate that an average of nine customers arrive per hour and...
The year 11 balance sheet of Cool Tools, Inc. reported the following fixed asset balances: On January 1, year 11, Cool Tools purchased fixed assets for $ 50,000 and sold fixed assets with an original...
Barry Hannah, CPA, plans to use attributes estimation to help assess control risk for the Oxford Company's control procedures over credit sales transactions. Hannah has begun to outline main steps in...
The adjusted trial balance of Elias Real Estate Appraisal at June 30, 2014, follows: Requirements 1. Prepare the companys income statement for the year ended June 30, 2014. 2. Prepare the companys...
Explain the term charismatic leadership giving references. Give and explain 2 the theoretical principles that underpin charismatic leadership giving references.
A 200.0-liter water tank can withstand pressures up to 20.0 bar absolute before rupturing. At a particular time the tank contains 165.0 kg of liquid water, the fill and exit valves are closed, and...
In a school with 968 students, any group of two students may wish to communicate in private. Using a private-key cryptosystem, how many keys would need to be created?
How can customer analysis be used to develop a more effective online service?
How should a confectionary brand assess the success of a campaign microsite in uplift of branding metrics?
What is the distinction between important and determinant attributes in consumer purchase decisions?
Describe search, experience, and credence attributes, and give examples of each.
Discuss Berthon et al .s (1998) suggestion that effective Internet promotion is similar to a company exhibiting at an industry trade show attracting visitors to its stand.
We represent a client who is a combat veteran. He is a patient of Jane Jones, a psychiatrist. He sent a medical record request to Dr. Jones, and she gave him records that were clearly redacted (with...
Color blindness appears in 1% of the people in a certain population. How large must a sample be if the probability of its containing a color-blind person is to be .95 or more? (Assume that the...
Let X1,..., Xn be independent random variables with pdfs where Î¸ > 0. Find a two-dimensional sufficient statistic for Î¸. -(r otherwise Uz,10) =
Let Xn be a sequence of random variables that converges in distribution to a random variable X. Let Yn be a sequence of random variables with the property that for any finite number c, Show that for...
What is the torsional stiffness of an annular steel shaft ( $\left.\mathrm{G}=80 \times 10^{9} \mathrm{~N} / \mathrm{m}^{2} ight)$ with a length of $2.5 \mathrm{~m}$, inner radius of \(10...
What is the torsional stiffness of a solid aluminum shaft ( $\left.\mathrm{G}=40 \times 10^{9} \mathrm{~N} / \mathrm{m}^{2} ight)$ with a length of $1.8 \mathrm{~m}$ and a radius of \(25...
What is the transverse stiffness of a cantilever steel beam $\left(\mathrm{E}=200 \times 10^{9} \mathrm{~N} / \mathrm{m}^{2} ight)$ with a length of $10 \mu \mathrm{m}$ and a rectangular cross...

In 2020, the dividend paid by Shell Ltd was $ 4.88. If the required rate of return

Question:

Expert Answer:

Solution a Dividend paid last year 2020 ie D0 488 Dividend growth ... View the full answer

Statistical Inference

Students also viewed these finance questions