Question
2.) Assume Evco, Inc. has a current stock price of $ 54.55 and will pay a $ 1.85 dividend in one year; its equity cost
2.) Assume Evco, Inc. has a current stock price of $ 54.55 and will pay a $ 1.85 dividend in one year; its equity cost of capital is 17 %. 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 $__
4.) OwenInc has a current stock price of $ 14 and is expected to pay a $ 1.00 dividend in one year. If OwenInc's equity cost of capital is 12%, what price would OwenInc's stock be expected to sell for immediately after it pays the dividend?
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