Credenza industries is expected to pay a dividend of 120 at, Ask an Expert

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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) 14.28
b) 58.52
c) 4.86
d) 3.48

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