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1 . Assume Evco,Inc., has a stock price of $ 4 8 . 7 2 and will pay a $ 2 . 0 0 dividend
Assume Evco,Inc., has a 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 thefirm pays the dividend in one year to justify its current price? You just purchased a share of SPCC for $ You expect to receive a dividend of $ in one year. If you expect the price after the dividend is paid to be $ what total return will you have earned over the year? What was your dividend yield? Your capital gain rate?
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