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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:

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Definitions:

Thinking Style

The characteristic manner in which an individual processes information, makes decisions, and solves problems.

Intercultural Communication

The process of exchanging meaningful and unambiguous information across cultural boundaries, to ensure mutual understanding.

Cultural Backgrounds

The cultural settings and experiences that influence an individual's beliefs, values, and behaviors.

Exchanging Messages

The act of sending and receiving written, audio, or video messages between individuals or groups.

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