Credenza Industries Is Expected to Pay a Dividend of $1

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