Use the Information for the Question(s)below

question 27

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 dividend yield that you will receive on your investment is closest to:

• A)5.75%.
• B)6.50%.
• C)6.25%.
• D)4.00%.

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Definitions:

Osteoporosis

A bone disease that occurs when the body loses too much bone, makes too little bone, or both, leading to fragile and easily broken bones.

Calcium Deficiency

A state where the body lacks enough calcium, leading to weakened bones and other health issues.

Bone Mass

The amount of mineral matter per square centimeter of bones. It is a key indicator of bone strength and health.

Vitamin K

A fat-soluble vitamin important for blood coagulation and bone metabolism, found in green leafy vegetables, fruits, dairy products, and fermented foods.