Use the Information for the Question(s)below

question 2

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 from holding Von Bora stock for the first year is closest to:

• A)$0.95.
• B)$1.40.
• C)$1.85.
• D)$1.25.

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Definitions:

Alcohol Usage

The consumption of beverages containing ethyl alcohol, which can have varying effects on health and behavior.

Tobacco Usage

The act of consuming tobacco products, including smoking cigarettes, cigars, or using smokeless tobacco products.

Subjective Pain

Pain that is felt by the sufferer and reported, but may not be measurable or observable by others.

Chronic Malignant

Chronic malignant describes a condition or disease that is both long-lasting (chronic) and characterized by the presence of cancerous cells.