Question
Assume Evco, Inc. has a current stock price of $53.82 and will pay a $1.85 dividend in one year; its equity cost of capital is
Assume Evco, Inc. has a current stock price of $53.82 and will pay a $1.85 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?
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International Finance Transactions Policy And Regulation
Authors: Hal Scott, Anna Gelpern
21st Edition
1634602048, 978-1634602044
