Assume​ Evco, Inc. has a current stock price of $50.92 and will pay a $2.20 dividend in one​ year; its equity cost of capital is 18%. What price must you expect Evco stock to sell for immediately after the firm pays the dividend in one year to justify its current​ price? We can expect Evco stock to sell for ​$_____. ​(Round to the nearest​ cent.)

The lions Corporation is paying dividends of $1.24 at t = 1 (this is at t = 1, not t = 0) which will then grow at rate of 10% between t = 1 and t = 2 only and thereafter grow at the rate of 5% into the foreseeable future. What should be the price of lions Stock if investors use 7%? to discount the dividends?

Suppose Acap Corporation will pay a dividend of $2.89 per share at the end of this year and $2.93 per share next year. You expect​ Acap's stock price to be $52.48 in two years. Assume that​ Acap's equity cost of capital is 11.3%. a. What price would you be willing to pay for a share of Acap stock​ today, if you planned to hold the stock for two​ years? b. Suppose instead you plan to hold the stock for one year. For what price would you expect to be able to sell a share of Acap stock in one​ year? c. Given your answer in ​(b​), what price would you be willing to pay for a share of Acap stock today if you planned to hold the stock for one​ year? How does this compare to your answer in ​(a​)?

Hudson Corporation will pay a dividend of $4.30 per share next year. The company pledges to increase its dividend by 6.30 percent per year indefinitely. If you require a return of 9.10 percent on your investment, how much will you pay for the company's stock today? Multiple Choice $153.57 $26.27 $147.43 $144.47 $159.71