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Assume Evco , Inc. has a current stock price of $ 5 0 . 2 4 and will pay a $ 2 . 0 5

Assume Evco, Inc. has a current stock price of $50.24 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?

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