The RLX Company just paid a dividend of $2.85 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 10 percent on this stock. What is the current price?

Answers

Answer 1

The current stock price is $54.15.

Given that  RLX Company just paid a dividend of $2.85 per share on its stock and dividends are expected to grow at a constant rate of 4.5 percent per year, indefinitely.

Stock valuation alludes to the valuation of the natural worth per portion of an organization's stock which can help the organization in deciding its reasonable worth in case of twisting up or consolidation. One of the models used to esteem the stock cost is the profit development model. It expects the cost of the stock to be the current worth representing things to come profits of the stock accepted to develop at a consistent rate.

Dividend (D0) = $2.85

Growth rate (g) = 4.5%

Required return (r) = 10%

Firstly, we have to calculate the value of the current stock price.

The current stock price can be calculated by using the dividend growing model.

[tex]\begin{aligned}\text{Current stock price}&=\frac{D_{0}\times(1+g)}{r-g}\\ &=\frac{2.85\times (1+0.045)}{0.10-0.045}\\ &=\frac{2.85\times 1.045}{0.055}\\ &=\frac{2.97825}{0.055}\\ &=54.15\end[/tex]

Hence, the current stock price when dividend of $2.85 are expected to grow at a constant rate of 4.5 percent per year, indefinitely is $54.15.

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Related Questions

Five higschool friends all happen to be female born in 2003 assuming that the survival of each ine is independent what is the proablity that at least one lives to be 100 year old

Answers

Answer:

15%

Step-by-step explanation:

Seven times a certain number plus the number is equal to 88. Find the number.

Answers

Answer:

11

Step-by-step explanation:

11 * 7= 77

77 + 11= 88

I need help on this. Can someone pls help me

Answers

Answer:

2

2

3x

Step-by-step explanation:

1.) we can divide both sides by three to get

(3x+6)/3=x+?

x+2= x+?

from here we can tell that ?=2

2.) Let's start by dividing both sides by negative one

(x-2)/ -1= ?-x

simplify

-x+2= ?-x

Here we get ?= 2

3.)

Let's mulitply both sides by 5 to get

15x-10= 5(?-2)

15x-10 = 5?-10

15x= 5?

3x= ?

the answer here is 3x


Which of the following is most likely the next step in the series?

Answers

Answer:

I need more info to answer this question.

Step-by-step explanation:

Simplify the expression below.
12a−8−5a+12

Answers

Step-by-step explanation:

Given

12a - 8 - 5a + 12

= 7a + 4

Hope it will help :)

Answer:

7a + 4

Step-by-step explanation:

First, let's rewrite this expression to combine like terms:

12a – 8 – 5a + 12  — I bolded the constants and underlined the expressions with variables

12a – 5a – 8 + 12  — it looks a little easier regrouped, doesn't it?

The last two terms are easy, right?

12 – 8 = 4  — simplify with subtraction

We'll focus on the first two terms now. Let's rewrite the terms with variables attached to make the subtraction easier:

a(12 – 5) = a(7) = 7a

We could also think of it this way: multiplication is just repeated addition.

12a = a + a + a + a + a + a + a + a + a + a + a + a (we just add a to itself 12 times)

5a = a + a + a + a + a (we just add a to itself 5 times)

Subtracting this expression would then look like this:

a + a + a + a + a + a + a + a + a + a + a + a – (a + a + a + a + a)

a + a + a + a + a + a + a + a + a + a + a + aaaaaa

Five of the a values will cancel out, and to show this, we can rewrite the expression once more, like this:

aa + aa + aa + aa + aa + a + a + a + a + a + a + a

The five a values cancel out and leave us with this:

a + a + a + a + a + a + a

How many a values are added together now? Seven of them, right? We add a to itself 7 times. We can then rewrite that expression as 7a.

Using the [12 – 8 = 4] expression from above, we add the 4 to the 7a to find our final answer: 7a + 4

I hope this helps increase your understanding of the concept! Have a great day!

A. X = -6 and X = -5.5
B. x = -0.5 and x = -5
C. X = 0 and x = 5
D. X = 5 and x = 6

Answers

Answer:

Step-by-step explanation:

The roots are the x-intercepts, 5 and 6.

a. Solve for x in the
diagram

Answers

Answer: 15 i think

Step-by-step explanation:

Answer:

as their is no labeling so it's hard to answer

55+55=110

180-110=70

vertical angles

so x=70

How to do this problem? Thank you!

Answers

(Bc)/(ab)=tan1
(Ef)/(ec)=tan2
Angle 1= angle 2
Tan1=tan2
(Bc)/(ab)=(ef)/(ec)
...

I need help so please be nice and help me hurry cause I have to turn this in!!

Answers

Answer:

16 easy

Step-by-step explanation:

A new animal hospital is planning to purchase a total of 36 cages for dogs, cats, and
rabbits. They want to purchase the same number of cages for dogs as for cats, but only
one-fourth as many cages for rabbits. How many of each cage should they buy?

Answers

For simplicity’s sake:
D = dogs, C = cats, R = rabbits

Since the dogs and the cats are the same number, we can say C = D.

R = 1/4D

2D + 1/4D = 36

Combine like terms and get the same denominator

9/4D = 36

9D = 144

D = 16

Now we know that D is 16, so C must be 16 as well. That leaves us with 32 cages.

36 - 32 = 4 rabbit cages. To double check this, 1/4 of 16 does equal 4.

Final answer: 16 D, 16 C, 4 R

Number of dogs cages = 16

Number of cats cages = 16

Number of rabbits cages = 4

What is an expression?

Expression in math is defined as the collection of the numbers variables and functions by using signs like addition, subtraction, multiplication, and division.

Given that;

For simplicity’s assume;

D = number of dogs cages, C = number of cats cages,

R = number of rabbits cages.

Since, The dogs and the cats cages are the same number,

We can say, C = D.

Only one fourth as many cages for rabbits,

So, we can formulate,

R = 1/4D

Since, A new animal hospital is planning to purchase a total of 36 cages for dogs, cats, and rabbits.

2D + 1/4D = 36

Combine like terms and get the same denominator;

9/4D = 36

9D = 144

D = 16

So,

Number of dogs cages = 16

Number of cats cages = 16

And, Number of rabbits cages = 36 - (16 + 16)

                                                = 36 - 32

                                                = 4

Thus,

Number of dogs cages = 16

Number of cats cages = 16

Number of rabbits cages = 4

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A + 1.05 = 3.7 plz help

Answers

Answer:

a=2.65

You just bring over the 1.05 to the 3.7, and just go on from there!

Hope this helps!

The flower shop has 40 times as many flowers in the cooler as Kendall has in her bouquet. Kendall has 15 flowers. How many flowers are in the cooler?

Can anyone help me thank you

Answers

Answer:

tu debes de saber las respuestas por qué tú estás como en onceavo

You have a data set with a Gas Price variable. It lists the price of a gallon of regular gasoline at a randomly selected 100 gas stations around the country in a particular week. You calculate a 95% confidence interval for the mean of Gas Price, and it turns out to be $2.43 plus or minus $0.16. Which of the following most closely reflects what you can conclude? a. If your sample size had been 400, and you had observed the same sample mean but a sample standard deviation twice as large as in your original sample, the 95% confidence interval would have been approximately $2.43 plus or minus $0.08. b. If your sample size had been 400 and you had obtained the same sample mean and sample standard deviation as in your original sample, the 95% confidence interval would have been approximately $2.43 plus or minus $0.08. c. If you had observed the same sample mean and sample size, but a sample standard deviation twice as large as the one you observed, the 95% confidence interval would have been approximately $2.43 plus or minus $0.24. d. If you had observed the same sample mean and sample size, but a sample standard deviation half as large as the one you observed, the 95% confidence interval would have been approximately $2.43 plus or minus $0.04.

Answers

Answer:

b. If your sample size had been 400 and you had obtained the same sample mean and sample standard deviation as in your original sample, the 95% confidence interval would have been approximately $2.43 plus or minus $0.08.

Step-by-step explanation:

Confidence interval:

A confidence interval is given by the sample mean plus minus the margin of error.

Margin of error:

[tex]M = z\frac{\sigma}{\sqrt{n}}[/tex]

In which M is the margin of error, z is related to the confidence level(the higher the confidence level, the higher the value of Z), [tex]\sigma[/tex] is the standard deviation and n is the size of the sample.

This is important to note that the margin of error is inversely proportional to the square root of the size of the sample.

In this question, we have that:

95% confidence interval for the mean of Gas Price is of $2.43 plus or minus $0.16, with a sample of 100.

Option A:

Sample size of 400, which is four times the original, while the standard deviation is twice the original.

This means that the margin of error would be the same, as it would be multiplied by 2 in the numerator and divided by the square root of 4, that is, 2 in the denominator. So the interval would still be of $2.43 plus or minus $0.16, which means that option a. is wrong.

Option B:

Sample size of 400, which is four times the original, while the rest is the same.

The margin of error would be divided by the square root of 4, that is, 2, which means that it would be half of the original, and the interval would be $2.43 plus or minus $0.08, which means that option b. is correct.

Option C:

In this case, the margin of error will be doubled, since the standard deviation is double the original. So the confidence interval would be of $2.43 plus or minus $0.32, which means that option c. is wrong.

Option D:

In this case, the margin of error will be halved, since the standard deviation is half the original.  So the confidence interval would be of $2.43 plus or minus $0.08, which means that option d. is wrong.

help asap, i will mark brainliest!

Answers

Answer:

150m

Step-by-step explanation:

[tex]Length=120-(-30)=120+30=150m[/tex]

Troy and Lisa were shopping for school supplies. Troy bought 3 notebooks and 5 thumb drives for $20.25. Lisa bought 8 notebooks and 8 thumb drives for $38. Find the cost of each notebook and the cost of each thumb drive.

Answers

Answer:

Step-by-step explanation:

3n + 5d = 20.25

24n + 40d = 162

8n + 8d = 38

-24n - 24d = -114

24n + 40d = 162

-24n - 24d = -114

—————————

16d = 48

d = 3

A drive costs $3

3n + 5(3) = 20.25

n = 1.76

A notebook costs $1.75

Guys I suck at this stuff so can someone Just PLEASE HELP ME

Answers

Answer:

I only

Step-by-step explanation:

The others have irrational & unsolvable numbers!

Hope that helps!

Evaluate the following: a. 4|−8| b. 2|−3| + 4(7) c. 8|−2| − 6 d. 5|−4| + 2|−6|

Answers

Step-by-step explanation:

a. 4×|-8| = 4×8 =32

b. 2×3+4×7= 6+28 = 34

c. 8×2-6 = 10

d. 5×4+2×6 = 32

23:
-
Determine the x- and y- intercepts for the graph defined by the given equation.
y = 7x + 3
a. X-intercept is (3,0)
CH
x-intercept is 0.-
y-intercept is 0,-
y-intercept is (3,0)
b.
d. x-intercept is (3, 0)
x-intercept is
0
y-intercept is
10
y-intercept is (0,3)
Please select the best answer from the choices provided
А
ОВ

Answers

Answer:

[tex](-\frac{3}{7}, 0)[/tex] -- x intercept

[tex](0,3)[/tex] -- y intercept

Step-by-step explanation:

Given

[tex]y = 7x + 3[/tex]

Required

Determine the x and y intercept

For x intercept.

Set [tex]y = 0[/tex]

So, we have:

[tex]y = 7x + 3[/tex]

[tex]0 = 7x + 3[/tex]

Collect Like Terms

[tex]7x = -3[/tex]

Make x the subject

[tex]x = -\frac{3}{7}[/tex]

Hence, the x intercept is: [tex](-\frac{3}{7}, 0)[/tex]

For the y intercept;

Set [tex]x = 0[/tex]

So, we have:

[tex]y = 7x + 3[/tex]

[tex]y = 7*0 + 3[/tex]

[tex]y = 0 + 3[/tex]

[tex]y = 3[/tex]

Hence, the y intercept is: [tex](0,3)[/tex]

AnswerB

Step-by-step explanation:

2x +5y = -7
7x + y = -8
Solve by substitution SHOW WORK!

Answers

Answer:

x = 1, y = -15

Step-by-step explanation:

7x + y = -8 ⇒ y = -7x-8

2x + 5y = -7

substitute -7x-8 for y:

2x + 5(-7x-8) = -7

2x - 35x - 40 = -7

-33x - 40  = -7

-33x = -33

x = 1

y = -7x-8 = -15

what is 893 :9 in long division​

Answers

0 remaining 9 i’m just typing more bc it says it’s can’t be under 20 words
Hi, I’m here to help! Here’s what I got:

A researcher is conducting a study of charitable donations by surveying a simple random sample of households in a certain city. The researcher wants to determine whether there is convincing statistical evidence that more than 50 percent of households in the city gave a charitable donation in the past year. Let p represent the proportion of all households in the city that gave a charitable donation in the past year. Which of the following are appropriate hypotheses for the researcher?

a. H_o : p=0.5 and H_a:p>0.5
b. H_o:p=0.5 and H_a:p≠0.5
c. H_o:p=0.5 and H_a:p<0.5
d. H_o:p>0.5 and H_a:p≠0.5
e. H_o:p>0.5 and H_a:p=0.5

Answers

Answer: a. [tex]H_o : p=0.5[/tex] and [tex]H_a:p>0.5[/tex].

Step-by-step explanation:

Let p represent the proportion of all households in the city that gave a charitable donation in the past year.

Reseracher wants to check whether p > 50% or p > 0.5

Since Alternative hypothesis contains ">, <, ≠" and null hypothesis is the opposite of alternative hypothesis.

So Null hypothesis: [tex]H_o: p=0.5[/tex]

Alternative hypothesis: [tex]H_a:p>0.5[/tex]

The correct option is a. [tex]H_o : p=0.5[/tex] and [tex]H_a:p>0.5[/tex].

Find the slope of the line represented in the table.
x

Answers

Answer:

The slope is -3

Step-by-step explanation:

Use the slope formula to find the slope.

The formula is .... ⏬

3629 you can use the digits twice make the largest four digit number​

Answers

Answer:

9632

or

9966

Step-by-step explanation:

im not 100% sure

An economist conducts a nationwide survey to study the financial perceptions of US adults. Specifically, he asks a random sample of 1,000 US adults: “Financially, are you doing OK or are you struggling to get by?” The results of the survey show that 829 of the 1,000 participants said they are doing OK.

(a) Construct a 95% confidence interval for the proportion of US adults who would say they are doing OK.

(b) Shortly thereafter, a similar study is conducted in Mexico with the intention of constructing a 95% confidence interval for the proportion of Mexican adults who would say they are doing OK. What is the smallest sample size that can be used to guarantee that the margin of error will be less than or equal to 0.01?

Answers

Answer:

a) (0.806, 0.852)

b)Margin of error ≤ 0.01

1.96*√{0.5*(1–0.5)/n} ≤ 0.01

√n ≥ 98

n ≥ 9604

• Smallest sample size = 9604

Step-by-step explanation:

I found this on Chegg

The volume Vof a cylindrical can is represented by the formula V=πr2h, where h is the height and r is the radius. A cylindrical can has a volume of 1014π cubic centimeters and a height of 6 centimeters. What is the radius of the can?

Answers

Answer:

Step-by-step explanation:

V = πr²h

1014π = πr²·6

r² = 1014/6 = 169

r = 13 cm

Help
Please ..................

Answers

Plug in -11 for x
8(-11) + 2.
-86

Answer:

-86

Step-by-step explanation:

Substitute -11 for x in the equation:

8(-11)+2

=-88+2

=-86

Si un ladrillo de adobe pesa 20kg. mas de la mitad de su peso. ¿Cuanto pesara un ladrillo y medio?​

Answers

Answer:

pesaria 2.25 kilos

explicacion

Dave has $70 saved and earns $20
each month in allowance. Terri has
$110 saved and earns $16 a month
in allowance. If they both save their
entire allowances, how long will it
take before Dave and Terri have saved
the same amount of money?

Answers

Answer:

10 months

Step-by-step explanation:

Please let me know if you want me to write an explanation for my answer :)

best answer gets brainliest​

Answers

k= -3

3y = x+6 can be rewritten as y = 1/3x + 2
a perpendicular slope is the opposite reciprocal of the original slope
so instead of 1/3 it would be -3
therefore. k must equal -3 to be perpendicular to 3y = x+6

1.) Some banks charge a fee on savings accounts that are left inactive for an extended period of time. The equation y = 5000 * (0.98) ^ x represents the value, y of one account that was left inactive for a period of x years .

a. What was the initial amount of money that was left in this savings account?

b. What is the percent of change each year in this savings account?

Answers

Answer:

a. The initial amount of money that was left in this savings account was of 5000.

b. Decrease of 2% each year.

Step-by-step explanation:

Exponential function:

An exponential function, with an initial value of A(0), and a decay rate of r, as a decimal, is given by:

[tex]A(t) = A(0)(1-r)^t[/tex]

In this question, we have:

[tex]y = 5000*(0.98)^x[/tex]

a. What was the initial amount of money that was left in this savings account?

This is y(0) = 5000

The initial amount of money that was left in this savings account was of 5000.

b. What is the percent of change each year in this savings account?

First as a decimal.

1 - r = 0.98

r = 1 - 0.98

r = 0.02

So a decrease of 2% each year.

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Carbon, hydrogen, and oxygen can combine to form monomers called monosaccharides. Which type of macromolecule is made up of monomers that are monosaccharides? Read the following passage:"The Canadian national flag, red and white with a central maple leaf, dates back to 1965. This striking design was adopted out of patrioticurge for a symbol that was uniquely Canadian. Previous flags had included the Union Jack of the United Kingdom in one corner. In anod tothe Union Jack was named an official ceremonial flag of Canada."history, after being dropped from the national flag,Which sentence uses subjective language?O In a nod to history, after being dropped from the national flag, the Union Jackwas named an official ceremonial flag of Canada.O The Canadian national flag, red and white with a central maple leaf, dates back to 1965.O Previous flags had included the Union Jack of the United Kingdom in one corner. This striking design was adopted out of a patriotic urge for a symbol that was uniquely Canadian. 6/4+3/6+2/3=???????? Find the value of each expression 0.5 exponent 4 + 1 Basic career skills include all of the following:organizingreadingwritingkeyboardingThe answer is Organizing, Reading, and Writing. Got 100% in edge. Which geographic features influenced the political borders and boundaries of China? Choose three correct answers.desertsmountain rangeslarge bodies of watergrasslandsglaciers Francesca and her family traveled out of state to visit family members. The first day they drove 238 miles. The second day they drove 55 more miles than the first day. Francesca wants to find the number of miles, m, they drove ok the second day. What equation could francesca use? Which statement is only true for the t-test for dependent means rather than t-tests in general?a)population variances are estimated from the information in the sample of scores actually studiedb)pretest 8. Which group was targeted for repatriation in the Southwest?European immigrantsAfrican AmericansMexican immigrantsO Japanese Americans how much food does the average global household waste each year Which branch of government and which level of government is not doing its job by enforcing the law if Marijuana is legal in California but illegal in the United States as a whole? estion #6 - ParagraphGalaxy #6To which category does galaxy #6 belong? Why does it belong in this category? Explain how compound growth is relevant to Charles and ebony budget please answer immediately, Which statement about the transfer of energy between two objects is true and you dont have to give step by step you can but you don't have to.a: Waves in the air may transfer energy from one object to another.B:Only colliding objects are able to transfer energy between themc:The force of gravity always acts to transfer energy.D:Only objects that are touching may transfer energy between them. What is the key differentiator between monopoly and monopolistic competition? can you help me find x and yplease and thank you!!!and if you could explain that will be appreciated! :D PLS PLS HELP PLSSSSSSSSSSSSSSSSSSS if pressure of a gas sample is quadrupled and the absolute temperature is doubled what factor does the volume of the sample change What are the general climate conditions in much of Eastern Europe?a. good for trade and less complexb. humid continental cold, snowy winters and hot summersc. Mediterranean warm and dryd. hot summers What does stanza 3 mean in I Wandered Lonely as a Cloud?