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Assume Evco, Inc. has a current stock price of $ 47.34 and will pay a $ 2.05 dividend in one year; its equity cost of

Assume Evco, Inc. has a current stock price of

$ 47.34

and will pay a

$ 2.05

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?

Round to the nearest cent.

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