Credenza Industries Is Expected to Pay a Dividend of $1

question 24

Multiple Choice

Credenza Industries is expected to pay a dividend of $1.70 at the end of the coming year. It is expected to sell for $62 at the end of the year. If its equity cost of capital is 9%, what is the expected capital gain from the sale of this stock at the end of the coming year?

• A) $3.56
• B) $56.88
• C) $5.12
• D) $58.44

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Definitions:

Employment Act

Legislation that regulates labor conditions, including wages, working hours, and workplace safety.

Specialized Accommodations

Adaptations or modifications made to environments, tasks, or services to meet the unique needs of specific individuals, especially those with disabilities.

Mandatory Retirement

A policy requiring employees to retire at a specific age, regardless of their willingness or ability to continue working.

Age Preference

A bias or inclination towards individuals of a specific age group.