The RLX Company just paid a dividend of $315 por share on its stock. The dividends are expected to grow at a constant rate of 6percent per year, indefinitely Assume investors require a return of 11 percent on this stock.a. What is the current price?Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.b. What will the price be in three years and in fifteen years?Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g.. 32.16.a. Current priceb. Price in three yearsPrice in fifteen years

The dividend is the distribution of profit to the shareholders. The dividend growth model can be…

Answered: The RLX Company just paid a dividend of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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