Question
Assume Evco, Inc., has a current stock price of $ 59 and will pay a $ 1.75 dividend in one year; its equity cost of
Assume Evco, Inc., has a current stock price of $ 59 and will pay a $ 1.75 dividend in one year; its equity cost of capital is 17 % . 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?
The expected price is..$?
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Forecasting Principles And Practice
Authors: Rob J Hyndman, George Athanasopoulos
1st Edition
0987507109, 978-0987507105
