Credenza Industries Is Expected to Pay a Dividend of $1

question 57

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 stock at the end of the coming year?

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

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Definitions:

Alcohol

A psychoactive substance found in drinks such as beer, wine, and spirits, known for its effects on mood, judgment, and coordination.

Benzodiazepines

A class of psychoactive drugs used primarily for treating anxiety, insomnia, and seizures, known for their sedative effects.

Legally Manufactured

Products that are made and distributed in accordance with the law.

Sedatives

Substances that induce sedation by reducing irritability or excitement, often prescribed to promote calmness or to induce sleep.