Question
AssumeEvco, Inc. has a current stock price of $ 52.46 and will pay a $ 1.95 dividend in oneyear; its equity cost of capital is
AssumeEvco, Inc. has a current stock price of $ 52.46 and will pay a $ 1.95 dividend in oneyear; its equity cost of capital is 12 % 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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Financial Management for Public, Health and Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
5th edition
1506326846, 9781506326863, 1506326862, 978-1506326849
