Propulsion sciences stock dividend

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Reference no: EM13914476

Propulsion Sciences' (PS) stock dividend has grown at 10% per year for many years. Investors believe that a year from now the company will pay a dividend of $3 and that dividends will continue their 10% growth indefinitely. If the market's required return on PS stock is 12%, what does the stock sell for today? How much will it sell for a year from today after the stockholders receive their dividend?

Reference no: EM13914476

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