Question: Propulsion Sciences PS stock dividend has grown at 10

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?

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  • CreatedMarch 26, 2015
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