Credenza Industries is expected to pay a dividend of $1.75 at the end of the coming year. It is expected to sell for $67 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.

$62.04

B.

$3.34

C.

$4.96

D.

$63.66

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