Use the Information for the Question(s)below

question 8

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

• A)3.5%.
• B)4.0%.
• C)6.0%.
• D)4.5%.

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Definitions:

Human Error

Mistakes made by individuals in performing tasks or making decisions, often leading to deviations from intended outcomes or processes.

Control Activity

Actions, policies, and procedures that are implemented to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Receivables

Amounts owed to a company by its customers for goods or services delivered on credit.