Assume Evco, Inc., has a current price of ($45) and will pay a ($2.05) dividend in one

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Assume Evco, Inc., has a current price of $$45$ and will pay a $$2.05$ dividend in one year, and its equity cost of capital is 16%. What price must you expect it to sell for right after paying the dividend in one year to justify its current price?

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Corporate Finance

ISBN: 9781292446318

6th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Apr 03, 2024 03:01 AM

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Assume Evco, Inc., has a current price of ($45) and will pay a ($2.05) dividend in one

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Corporate Finance

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