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Problem 7 - 1 Stock Values [ LO 1 ] The RLX Company just paid a dividend of $ 2 . 7 0 per share

Problem 7-1 Stock Values [LO 1]
The RLX Company just paid a dividend of $2.70 per share on its stock. The dividends are expected to grow at a constant rate of 4.5
percent per year, indefinitely. Assume investors require a return of 9 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 six years and in thirteen years?
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,32.16.
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