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?