Use the Information for the Question(s)below

question 83

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 on purchasing Von Bora stock in one year,right after the $1.40 dividend is paid.You then plan on selling your stock at the end of year two,right after the $1.50 dividend is paid.The capital gain rate that you will receive on your investment is closest to:

• A)4.00%.
• B)3.75%.
• C)6.25%.
• D)3.50%.

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Definitions:

Egalitarianism

Egalitarianism is a school of thought that emphasizes equality for all people, advocating for equal rights, opportunities, and treatment across gender, race, economic status, and more.

Liberalism

A political and moral philosophy based on liberty, consent of the governed, and equality before the law.

Communism

A political and economic ideology advocating for the establishment of a classless society where all property is publicly owned and each person works and is paid according to their abilities and needs.

Conservatism

A political and social philosophy that promotes retaining traditional social institutions in the context of culture and civilization, often emphasizing respect for authority and resistance to change.