Question
Assume Evco, Inc. has a current stock price of $49.91 and will pay a $1.95 dividend in one year; its equity cost of capital is
Assume Evco, Inc. has a current stock price of $49.91 and will pay a $1.95 dividend in one year; its equity cost of capital is 12%. 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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Fundamentals Of Financial Management Concise
Authors: Eugene F. Brigham, Joel F. Houston
11th Edition
0357517717, 9780357517710
