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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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