Question
Assume Evco, Inc., has a current stock price of $43 and will pay a $ 2.05 dividend in one year; its equity cost of capital
Assume Evco, Inc., has a current stock price of $43 and will pay a $ 2.05 dividend in one year; its equity cost of capital is 14% . 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?
The expected price is $? (Round to the nearest cent.)
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Public Finance
Authors: Richard W. Tresch
2nd Edition
0126990514, 978-0126990515
