Assume Evco, Inc., has a current price of $50 and will pay a $2 dividend in one

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Assume Evco, Inc., has a current price of $50 and will pay a $2 dividend in one year, and its equity cost of capital is 15%. 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

ISBN: 9780137845071

6th Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Jun 12, 2024 01:09 AM

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Assume Evco, Inc., has a current price of $50 and will pay a $2 dividend in one

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Corporate Finance

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