What price must you expect evco stock to sell for, Financial Management

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What price must you expect evco stock to sell for

Assume? Evco, Inc., has a current stock price of $36 and will pay a $1.90 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?

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Financial Management: What price must you expect evco stock to sell for

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