Use the Information for the Question(s)below

question 78

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%.
-The price you would be willing to pay today for a share of Von Bora stock,if you plan to hold the stock for two years is closest to:

• A)$23.15.
• B)$20.65.
• C)$21.95.
• D)$21.90.

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Definitions:

Social Context

The environmental and cultural settings that influence the understanding, meaning, and behavior of individuals or groups.

Perceptual Meaning

The significance or understanding gleaned from sensory input, involving the interpretation of environments, objects, and events.

Symbols

Objects, figures, or colors used to represent abstract ideas or concepts.

Apes

A group of primates without tails, including gorillas, chimpanzees, orangutans, and bonobos.