Use the Information for the Question(s)below

question 62

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 one year.The price one would expect to be able to sell a share of Von Bora stock for in one year is closest to:

• A)$26.50.
• B)$22.70.
• C)$23.15.
• D)$24.10.

---

Definitions:

Advertising

This refers to the activity or profession of producing advertisements for commercial products or services.

Personality

The combination of emotional, attitudinal, and behavioral response patterns of an individual.

Third Parties

Political parties in a two-party dominant system that are not one of the two major parties, often playing a role in introducing new ideas or pressuring the major parties to address certain issues.

Major Parties

The dominant political parties within a political system that have the most representation and influence over government policies and decisions; often refers to Republicans and Democrats in the United States.