Question
AssumeEvco, Inc. has a current stock price of $46.03 and will pay a $1.90 dividend in oneyear; its equity cost of capital is 17%. What
AssumeEvco, Inc. has a current stock price of $46.03 and will pay a $1.90 dividend in oneyear; 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 currentprice?
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Investments Analysis and Management
Authors: Charles P. Jones
12th edition
978-1118475904, 1118475909, 1118363299, 978-1118363294
