Firm pays the dividend in one? year

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Assume? Evco, Inc. has a current stock price of $ 53.69 and will pay a $ 1.95 dividend in one? year; its equity cost of capital is 16 %. To justify its current? price, what price must you expect Evco stock to sell for immediately after the firm pays the dividend in one? year?

Reference no: EM132546097

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