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Assume Evco, Inc. has a current stock price of $46.87 and will pay a $1.75 dividend in one year, its equity cost of capital is

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Assume Evco, Inc. has a current stock price of $46.87 and will pay a $1.75 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? 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? GOOS

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