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
1 answer:
$3.56 is the capital gain
<u>Explanation:</u>
<u>Credenze industries </u>
The Dividend = 1.70 , Cost of capital = 9% , Selling price =62 , calculation of Expected capital gain =?
<u>In order to calculate the Present market price (PM) , </u>
Let the PM (Present market value) = x
The Cost of equity = the change in market price + dividend
=> X = $ 58.44 .
Therefore, the Capital Gain that has been gained is = $ 3.56
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The decrease in demand would be illustrated by a change from A to C.
<h3>What will be the change?</h3>The demand curve is a downward sloping curve that shows the relationship between price and the quantity demanded. There is a negative relationship between price and quantity demanded.
A change in demand is caused by other factors other than the price of the good. Other factors include a change in income, a change in consumer taste or a change in the price of substitute goods.
When there is a change in demand, the demand curve would shift either to the right or to the left. When demand decreases, the demand curve would shift to the left. When demand increases, the demand curve would shift to the right.
Since, the demand for donuts have decreased, the demand curve would shift to the left. This would be a shift from A to C.
Please find attached the complete question. To learn more about the demand curve, please check: brainly.com/question/25140811
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