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Assume Evco , Inc. has a current stock price of $ 5 1 . 4 4 and will pay a $ 2 . 1 0

Assume Evco, Inc. has a current stock price of $51.44 and will pay a $2.10 dividend in one year; its equity cost of capital is 16%. 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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