What price would its stock be expected to sell

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QUESTION - Company A has a current stock price of $200 and is expected to pay a $5 dividend in one year. The equity cost of capital is 7.5%. What price would its stock be expected to sell for immediately after it pays the dividend? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer.

Reference no: EM132990476

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