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%.

Understand the concept of fixed, variable, and total costs in production.

Calculate average fixed, average variable, and average total costs given specific data.

Identify cost curves and their significance in short-run production costs.

Identify and calculate marginal cost in the context of production.

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