Credenza Industries Is Expected to Pay a Dividend of $1

question 81

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
• E)$62.00

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Definitions:

Confidence

The feeling or belief that one can rely on someone or something; firm trust.

Self-Esteem

The subjective assessment of one's own worth, ability, or importance, significantly influencing mental health and well-being.

Unconditional Positive Regard

An attitude of grace that values someone regardless of their behavior or feelings.

Low Self-Esteem

A negative perception of oneself, characterized by a lack of confidence and feeling unworthy or inadequate.