What will the price be in three years


Problem

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 current price? What will the price be in 3 years? in 15 years?

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Financial Accounting: What will the price be in three years
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