1. Assume Evco, Inc. has a current stock price of $ 46.44 and will pay a $ 2.20 dividend in one? year; its equity cost of capital is13 %.
2. 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?
3. Please discuss an example of a real company that utilizes a dividend policy (providing support as appropriate) that you feel is appropriate in their circumstances. (200 words)