Credenza Industries is expected to pay a dividend of

$1.50

at the end of the coming year. It is expected to sell for

$60

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?

Question content area bottom

Part 1

A.$ 4.95

$4.95

B.$ 56.42

$56.42

C.$ 55.05

$55.05

D.$ 3.58