Firm pays dividend in one year to justify its current? price

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Reference no: EM131815337

Assume? Evco, Inc. has a current stock price of $ 45.34and will pay a $ 1.85 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? We can expect Evco stock to sell for ?$.

Reference no: EM131815337

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