Propulsion Sciences' (PS) stock dividend has grown at 0.06 per year for as long as anyone can remember. Investors believe that a year from now the company will pay a dividend of $3 and that dividends will continue their 0.06 growth indefinitely. If the market price Is on PS stock is 25 and it is under valued by $3.5 and the company pays $2 as flotaticn cost. what is the cost of the stock

Propulsion Sciences' (PS) stock dividend has grown at 0.06 per year for as long as anyone can remember. Investors believe that a year from now the company will pay a dividend of $3 and that dividends will continue their 0.06 growth indefinitely. If the market price Is on PS stock is 25 and it is under valued by $3.5 and the company pays $2 as flotaticn cost. what is the cost of the stock

Name: Propulsion Sciences' (PS) stock dividend has grown at 0.06 per year fo
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Description: Propulsion Sciences' (PS) stock dividend has grown at 0.06 per year for as long as anyone can remember. Investors believe that a year from now the company will pay a dividend of $3 and that dividends will continue their 0.06 growth indefinitely. If t

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 3P

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Propulsion Sciences' (PS) stock dividend has grown at 0.08 per year for as long as anyone can remember. Investors believe that a year from now the company will pay a dividend of $4 and that dividends will continue their 0.08 growth indefinitely. If the market price is on PS stock is 2 and it is under valued by $4 and the company pays $3 as flotation cost. what is the cost of the stock?
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