Use the Information for the Question(s)below

question 8

Multiple Choice

Use the information for the question(s) below.
Von Bora Corporation is expected to pay a dividend of $1.40 per share at the end of this year and a $1.50 per share at the end of the second year.You expect Von Bora's stock price to be $25.00 at the end of two years.Von Bora's equity cost of capital is 10%.
-Suppose you plan to hold Von Bora stock for only one year.Your capital gain rate from holding Von Bora stock for the first year is closest to:

• A)3.5%.
• B)4.0%.
• C)6.0%.
• D)4.5%.

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Definitions:

Phimosis

A condition where the foreskin of the penis cannot be fully retracted over the glans, which can lead to discomfort or infection.

Foreskin

The retractable fold of skin covering the head of the penis in uncircumcised males.

Glans

The sensitive bulbous structure at the distal end of the penis or clitoris, often involved in sexual arousal and pleasure.

Syphilitic Chancre

A painless ulcer that typically forms at the site of infection in the early stage of syphilis, a sexually transmitted infection caused by the bacterium Treponema pallidum.