1.Assume Evco, Inc. has a current stock price of $45.17 and will pay a $1.95 dividend in one year; its equity cost of capital is 15%. 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? 2. You just purchased a share of SPCC for $100. You expect to receive a dividend of $5 in one year. If you expect the price after the dividend is paid to be $110, what total return will you have earned over the year? What was your dividend yield? Your capital gain rate? 3. 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 is $22.00. a. What is Anle's equity cost of capital? b. How much of Anle's equity cost of capital is expected to be satisfied by dividend yield and how much by capital gain? 4. Suppose Acap Corporation will pay a dividend of $2.75 per share at the end of this year and $2.98 per share next year. You expect Acap's stock price to be $53.24 in two years. Assume that Acap's equity cost of capital is 8.5%. a. What price would you be willing to pay for a share of Acap stock today, if you planned to hold the stock for two years? b. Suppose instead you plan to hold the stock for one year. For what price would you expect to be able to sell a share of Acap stock in one year? c. Given your answer in (b), what price would you be willing to pay for a share of Acap stock today if you planned to hold the stock for one year? How does this compare to your answer in (a)? 5. NoGrowth Corporation currently pays a dividend of $0.57 per quarter, and it will continue to pay this dividend forever. What is the price per share of NoGrowth stock if the firm's equity cost of capital is 18.5%