Credenza Industries Is Expected to Pay a Dividend of $1

question 23

Multiple Choice

Credenza Industries is expected to pay a dividend of $1.20 at the end of the coming year. It is expected to sell for $62.00 at the end of the year. If its equity cost of capital is 8%, what is the expected capital gain from the sale of this share at the end of the coming year?

• A) $58.52
• B) $3.48
• C) $14.28
• D) $4.86

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Definitions:

Performance

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