Credenza Industries is expected to pay a dividend of

$2.00

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

$69

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.

$5.70

B.

$63.30

C.

$65.14

D.3.86