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QUESTION 6 Credenza Industries is expected to pay a dividend of $1.70 at the end of the coming year. It is expected to sell for
QUESTION 6 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? $5.12 $58.44 $3.56 $56.88 QUESTION 7 Suppose you expect Ricky Roo Pet Stores to pay an annual dividend of $0.60 per share in the coming year and to trade for $50.50 per share at the end of the year. If investments with equivalent risk to Longs' stock have an expected return of 10.80%. Answer to two decimal places What is the most you would pay today for Ricky Roo stock? What dividend yield and capital gain rate would you expect at this price
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