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If you were writing a quote structured like this... 'You were right Izzy!', said Ted, 'there is something we can do.'

… would be correct to have a fullstop after 'Ted' and a capital letter for 'there' (because it is two separate phrases) or would it be correct to write it as I have typed it above (because they are still spoken by the same person and so are connected, and a capital is not required)?

Also, would this alter if the example were something like 'It's no use,' said Fred, 'go on without me.' (e.g. would that need a full stop and a capital after 'Fred', or does the above work?)

Thank you!

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    I would probably use 'You were right Izzy!', said Ted. 'There is something we can do.' The first sentence ends with "!", so "There" begins a new sentence. And you maintain continuity of speaker by keeping it all in a single paragraph, starting a new paragraph when speakers change.
    – Hot Licks
    Jun 22, 2020 at 2:24
  • While the modern relaxed approach (others still exist!) to punctuation would allow 'You were right Izzy!' said Ted, 'there is something we can do.' (double punctuation is a last resort for clarification, but sentence-medial exclamation and question marks are used by fine authors), splitting into two sentences is less messy. But you may prefer the less staccato effect of the comma ....
    – Edwin Ashworth
    Oct 15, 2021 at 10:51

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Taking your "Fred" example:

"It's no use," said Fred. "Go on without me."

The more common style is to end the first phrase by identifying who is speaking, and ending that as a complete phrase with a period. This makes it so the next dialogue phrase begins with a capital letter. If they are related phrases, they stay in the same line.

Also consider this (expanding on your example):

"It's no use," said Fred. "Go on without me. I can't keep up."

The pattern stays the same even if there is additional dialogue.

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