Question
AssumeEvco, Inc. has a current stock price of $52.08 and will pay a $ 1 . 9 0 dividend in one year; its equity cost
AssumeEvco, Inc. has a current stock price of $52.08and will pay a $1.90dividend in oneyear; its equity cost of capital is 10%.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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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
15th edition
134796551, 134796550, 978-0134796550
