Assume Evco, Inc., has a current price of $64 and will pay a $2.15 dividend in one

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Assume Evco, Inc., has a current price of $64 and will pay a $2.15 dividend in one year, and its equity cost of capital is 11%. What price must you expect it to sell for immediately after paying the dividend in one year to justify its current price?

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Corporate Finance The Core

ISBN: 9781292158334

4th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Feb 29, 2024 04:01 AM

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Assume Evco, Inc., has a current price of $64 and will pay a $2.15 dividend in one

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The expected price of Evco Inc after paying the dividend in o...View the full answer

Corporate Finance The Core

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