Assume Evco, Inc. has a current stock price of $ 53.74$53.74 and will pay a $ 2.00 dividend in one year; its equity cost of
Assume Evco, Inc. has a current stock price of $ 53.74$53.74 and will pay a $ 2.00 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?
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Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Global Edition
1292437154, 978-1292437156
