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?

On july 2, year 4, wynn, inc., purchased as a short-term investment a $1 million face-value kean co. 8% bond for $910,000 plus accrued interest to yield 10%. the bonds mature on january 1, year 11, and pay interest annually on january 1. on december 31, year 4, the bonds had a fair value of $945,000. on february 13, year 5, wynn sold the bonds for $920,000. in its december 31, year 4, balance sheet, what amount should wynn report for the bond if it is classified as an available-for-sale security?