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

---

Definitions:

Business Plans

A detailed document outlining the objectives, strategies, financial projections, and target market for a new or existing business.

Idea Generation

The process of creating, developing, and communicating new concepts or solutions, often an initial step in the creative or innovation process.

Formal Business Plan

A detailed document that outlines the goals, strategies, financial forecasts, and market analysis of a business.

Financial Projections

Estimates of future financial performance of a business, including projected income, revenue, and expenses.