Assume Evco, Inc., has a current stock price of $50.36 and will pay a $2.20 dividend in
Question:
Assume Evco, Inc., has a current stock price of $50.36 and will pay a $2.20 dividend in one year; its equity cost of capital is 12%. What price must you expect Evco stock to sell for immediately after the firm pays the dividend in one year to justify its current price?
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9781292437156
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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