Use the Information for the Question(s)below

question 81

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

• A)6.0%.
• B)4.0%.
• C)6.5%.
• D)5.5%.

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Definitions:

Levels of Processing Model

A theory of memory that proposes that deeper analysis of information leads to longer-lasting memory, as opposed to shallow processing.

Three-part Model

In psychology, often refers to the structure of the mind according to Freud's theory, consisting of the id, ego, and superego.

Encoding Information

The initial learning of information; the process of transforming sensory input into a form that can be stored and used later.

Sensory Storage

The initial, transient stage of memory storage that captures near-exact copies of sensory stimuli for very short periods.