Question: Assume Evco, Inc., has a current stock price of $ 4 6 and will pay a $ 2 . 1 5 dividend in one year;

Assume Evco, Inc., has a current stock price of $ 46 and will pay a $ 2.15 dividend in one year; its equity cost of capital is 17%. 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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