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In 2020, the dividend paid by the Shell Ltd was $ 4

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In 2020, the dividend paid by the Shell Ltd was $ 4.88. If the required rate of return is 8% and dividend will grow forever at 2%

1. Calculate an estimated value of Shell Ltd. (5 marks)

2. If the actual early-2021 stock price of Shell traded in the market was $ 79.96, what is your decision as investor? Are you going to buy this stock or not? Explain.