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B17 1 A Xfx (B6 * (1 + B7)^B9) / (B8 - B7) B с D E F G H J K L 2 The RLX Co. just paid a dividend of $3.20 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. If investors require a return of 10.5 percent on the company's stock, what is the stock price in 2 years? What will the price be in 3 years? In 15 years? 3 4 Input area: 5 6 Dividend paid 7 Dividend growth rate 8 Required return 9 Year for price 10 Year for price 11 Year for price 12 $3.20 4% 10.50% 2 3 15 13 (Use cells A6 to B11 from the given information to complete this question.) 14 15 Output area: 16 17 Price in 2 years 18 Price in 3 years $53.25 19 Price in 15 years 20 21

B17 1 A Xfx (B6 * (1 + B7)^B9) / (B8 - B7) B с D E F G H J K L 2 The RLX Co. just paid a dividend of $3.20 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. If investors require a return of 10.5 percent on the company's stock, what is the stock price in 2 years? What will the price be in 3 years? In 15 years? 3 4 Input area: 5 6 Dividend paid 7 Dividend growth rate 8 Required return 9 Year for price 10 Year for price 11 Year for price 12 $3.20 4% 10.50% 2 3 15 13 (Use cells A6 to B11 from the given information to complete this question.) 14 15 Output area: 16 17 Price in 2 years 18 Price in 3 years $53.25 19 Price in 15 years 20 21

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 6P
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B17 1 A Xfx (B6 * (1 + B7)^B9) / (B8 - B7) B с D E F G H J K L 2 The RLX Co. just paid a dividend of $3.20 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. If investors require a return of 10.5 percent on the company's stock, what is the stock price in 2 years? What will the price be in 3 years? In 15 years? 3 4 Input area: 5 6 Dividend paid 7 Dividend growth rate 8 Required return 9 Year for price 10 Year for price 11 Year for price 12 $3.20 4% 10.50% 2 3 15 13 (Use cells A6 to B11 from the given information to complete this question.) 14 15 Output area: 16 17 Price in 2 years 18 Price in 3 years $53.25 19 Price in 15 years 20 21
Transcribed Image Text:B17 1 A Xfx (B6 * (1 + B7)^B9) / (B8 - B7) B с D E F G H J K L 2 The RLX Co. just paid a dividend of $3.20 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. If investors require a return of 10.5 percent on the company's stock, what is the stock price in 2 years? What will the price be in 3 years? In 15 years? 3 4 Input area: 5 6 Dividend paid 7 Dividend growth rate 8 Required return 9 Year for price 10 Year for price 11 Year for price 12 $3.20 4% 10.50% 2 3 15 13 (Use cells A6 to B11 from the given information to complete this question.) 14 15 Output area: 16 17 Price in 2 years 18 Price in 3 years $53.25 19 Price in 15 years 20 21
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