What is the expected capital gain from the sale of stock

Assignment Help Financial Management

Reference no: EM132064025

1. Credenza Industries is expected to pay a dividend of $1.50 at the end of the coming year. It is expected to sell for $66 at the end of the year. If its equity cost of capital is 99%, what is the expected capital gain from the sale of this stock at the end of the coming year?

2. Rylan Industries is expected to pay a dividend of $5.40 year for the next four years. If the current price of Rylan stock is $32.69 and Rylan's equity cost of capital is 14%, what price would you expect Rylan's stock to sell for at the end of the four years?

Reference no: EM132064025

Questions Cloud

What types of audit reports issued for financial statement : What types of audit reports are issued for financial statement audits? Are all of those types of reports likely to be issued for audits of public companies

Disadvantages of sales promotions and public relations : What are the advantages and disadvantages of sales promotions and public relations?

Investor regard both opportunities as being equivalent : At what cost of capital would an investor regard both opportunities as being equivalent?

The incremental free cash flows associated with new machine : What are the incremental free cash flows associated with the new machine in year?

What is the expected capital gain from the sale of stock : What is the expected capital gain from the sale of this stock at the end of the coming year?

Rates of returns using the various methods outlined in text : What are the rates of returns using the various methods outlined in the text?

What is the contribution of security selection : What is the total return on the portfolio? What is the contribution of security selection?

Strategies of selling currency and buying currency options : What are the differences between the strategies of selling currency forward and buying currency options?

Use forward rather than futures currency contracts : Give some reasons why the German corporation should use forward rather than futures currency contracts.

User Account

All Pages