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%.
b) Find the PV of the firm’s stock price at the end of Year
3.
f) Calculate the dividend and capital gains yields for Years 1,
2, and...