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Assume​ Evco, Inc. has a current stock price of $ 52.99 and will pay a $ 2.10 dividend in one​ year; its equity cost of capital is 11 %. What price must you expect Evco stock to sell for immediately after
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Assume​ Evco, Inc. has a current stock price of $ 52.99 and will pay a $ 2.10 dividend in one​ year; its equity cost of capital is 11 %. 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?

User Hemangi Gokhale
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1 Answer

5 votes

Answer:

$56.7

Step-by-step explanation:

Please see attachment

Assume​ Evco, Inc. has a current stock price of $ 52.99 and will pay a $ 2.10 dividend-example-1
User Lennart Hoffmann
by
6.3k points
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