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Assume Evco, Inc., has a current stock price of $38 and will pay a $2.25 dividend in one year; its equity cost of capital is
Assume Evco, Inc., has a current stock price of $38 and will pay a $2.25 dividend in one year; its equity cost of capital is 19%. 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?
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