Problem $8-1$ Stock Values $[$LO$1]$

The RLX Company just paid a dividend of $$1\mathrm{.}55$ per share on its stock. The dividends are

expected to grow at a constant rate of $6$ percent per year indefinitely. Investors require a

return of $14$ percent on the company's stock.

a$.$ What is the current stock price? $($Do not round intermediate calculations and round

your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ What will the stock price be in $3$ years? $($Do not round intermediate calculations and

round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

c$.$ What will the stock price be in $7$ years? $($Do not round intermediate calculations and

round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

a$.$ Current price

b$.$ Stock price in $3$ years

c$.$ Stock price in $7$ years

Please provide detailed step$-$by$-$step. TY