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What price must you expect evco stock to sell

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Reference no: EM132933381

Question - Assume Evco, Inc. has a current stock price of $49.41 and will pay a $2.25 dividend in one year; its equity cost of capital is 15%.

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?

Reference no: EM132933381

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