Question
Assume Evco, Inc. has a current stock price of $ 53.69 and will pay a $ 1.95 dividend in one year; its equity cost of
Assume Evco, Inc. has a current stock price of $ 53.69 and will pay a $ 1.95 dividend in one year; its equity cost of capital is 16 %. To justify its current price, what price must you expect Evco stock to sell for immediately after the firm pays the dividend in one year?
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
