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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