Question: Please calculate colored areas B A 2. 3 Expected year-end dividend (D) 4 Beta coefficient 5 Risk-free rate (TR) 6 Market risk premium (RPM) 7

Please calculate colored areas

B A 2. 3 Expected year-end dividend (D) 4 Beta coefficient 5 Risk-free rate (TR) 6 Market risk premium (RPM) 7 Current stock price (Po) 8 Market in equilibrium 9 10 Calculate required retur: 11 Required return on common stock $2.00 0.90 3.60% 5.50% $49.00 Yes 13 Calculate constant growth rate, g: 14 Total return on common stock 15 Expected dividend yield 16 Expected capital gains yield 3 18 Calculate stock price in 3 years, PR 19. Number of years from today 20 Calculate P, using P. 21 Alternative calculation Calculate P, using dividends 11 Shell

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