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 in order to justify its current price?

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Corporate Finance The Core

ISBN: 9781292431611

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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