Question: please help show work and steps thanks Assume Evco, Inc. has a current stock price of $53.53 and will pay a $1.90 dividend in one

please help show work and steps thanks

Assume Evco, Inc. has a current stock price of $53.53 and will pay a $1.90 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? We can expect Evco stock to sell for $55.5. (Round to the nearest cent.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

The following tax calculations have been prepared by the senior accountant and the bookkeeper. The senior accountant has correctly determined the income for tax purposes for the various sources of...

I need this question answered ASAP. Thanks... Assume Evco, Inc. has a current stock price of exist52 21 and will pay exist1.75 dividend in one year as equity cost of capital is 19%. What price must...

LULUU - Question Help P9-1 (similar to) Con View Assume Evco, Inc., has a current stock price of $47 and will pay a $180 dividend in one year, its equity cost of capital is 13% What price must you...

Please show work in excel with appropriate formulas (Please do not just copy/paste in cells) Thank you Page 1 of 5 Date: 11/7/16 Course: Managerial Finance Week3 Problem Set 1. Your bank is offering...

.Solve the following. PLEASE ANSWER IN EXCEL USING FORMULAS Q1 Assume? Evco, Inc. has a current stock price of $53.41 and will pay a $2.25 dividend in one? year; its equity cost of capital is 11%....

hello, i have another home work again please check the file for the home work and please show all calculation in Excel form. thank you and please take your time with this homeworkalso need a good job...

1. Assume Evco, Inc. has a current stock price of $48.77 and will pay a $1.75 dividend in one year; its equity cost of capital is 18%. To justify its current price, what price must you expect Evco...

Answer questions below. Thanks :) Anle Corporation has a current stock price of $20.00 and is expected to pay a dividend of 1.00 in one year. Its expected stock price right after paying that dividend...

K Assume Evco, Inc. has a current stock price of $45.32 and will pay a is 17%. What price must you expect Evco stock to sell for immediately after the firm pays the dividend in one year to justify...

Assume Evco, Inc. has a current stock price of and will pay a dividend in one year; its equity cost of capital is . What price must you expect Evco stock to sell for immediately after the firm pays...

Assume Evco, Inc. has a current stock price of $49.75 and will pay a $2.15 dividend in one year; its equity cost of capital is 10%. To justify its current price, what price must you expect Evco stock...

Kellogg is the original plant-based food company offering an unmatched portfolio of favorite foods to drive holistic wellbeing and also a company dedicated to feeding hungry children, protecting our...

Compare a schedule/control Gantt chart and a precedence network.

Evaluate the integral. ( Remember the constant of integration. ) 1 5 d x 3 x x x 2

Directions: Answer the following questions 1. Why is variance important? 2. How do we compute a variance? 3. What is the difference between variance and standard deviation?

Activity 4: FIND THE VARIANCE Directions: Read, understand and analyze the problems very carefully. Then, solve and show your complete solutions: 1. The heights in cm of students in a class are 163,...

WHAT IS THE FORMULA? Directions: Give the formula of the following quantities. Write your answer on the table below. QUANTITY FORMULA 1. VARIANCE 2. STANDARD DEVIATION 3. STANDARD ERROR OF THE MEAN...

You run an custom t-shirt shop. You have a very specific process to make your t-shirts. First, you need to A) bleach the t-shirt, which takes 30 seconds. Then you add colors (done in any order) that...

Define the 17 key terms throughout the chapter identified in bold with their definitions in italic font. They are listed at the end of the chapter.

Describe the Big Five personality dimensions.

Identify three personal human relations goals for the course.