The dividend on propulsion sciences stock

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The dividend on Propulsion Sciences’ (PS) stock has grown at 10 percent 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 percent growth indefinitely. If the market’s required return on PS stock is 12 percent, 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: EM13956238

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