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:

Organizational Settings

The environment, including the culture, structure, and processes, in which an organization operates.

Job Satisfaction

The level of contentment employees feel about their work, which can affect their performance and overall well-being.

Work-Related Stress

The physical and emotional strain that arises from job demands not matching an employee's capabilities, resources, or needs.

Influence Tactics

Strategies or actions used by individuals or groups to alter or control the behavior, opinions, or decisions of others in their favor.