Question: Partial Question 8 2.5/5 pts Shell is experiencing rapid growth. Earnings and dividends are expected to grow at a rate of 15% during the
Partial Question 8 2.5/5 pts Shell is experiencing rapid growth. Earnings and dividends are expected to grow at a rate of 15% during the next 2 years, at 13% the following year, and at a constant rate of 6% during Year 4 and thereafter. Its last dividend was $1.15, and its required rate of return is 12%. f) Calculate the dividend and capital gains yields for Years 1, 2, and 3. Dividend Yield Year 1 = 5.24 % Capital Gains Yield Year 1 = Dividend Yield Year 2 = 5.65 Capital Gains Yield Year 2 = 6.76 Dividend Yield Year 3 = 5.63 Capital Gains Yield Year 3 = 6.35 6.37 do % % % de % do %
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