Calculate the dividend and capital gains yields

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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%.

Calculate the dividend and capital gains yields for Years 1, 2, and 3.

Dividend Yield Year 1 = %

Capital Gains Yield Year 1 = %

Dividend Yield Year 2 = %

Capital Gains Yield Year 2 = %

Dividend Yield Year 3 = %

Capital Gains Yield Year 3 = %

Reference no: EM133075243

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