Use the Information for the Question(s)below

question 2

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

• A)$0.95.
• B)$1.40.
• C)$1.85.
• D)$1.25.

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Definitions:

Vertically Applied Forces

Forces that act perpendicular to the horizontal surface, such as gravitational forces acting on a structure or component.

Compressed Condition

The state of a material or object that has been compacted or squeezed, reducing its volume and changing its density.

Jounce

The most compressed condition of a spring. Literally bounce.

Spring

An elastic device used to store or suppress mechanical force. Springs are used in vehicle suspensions where they act to support the chassis and buffer it from road forces. Some examples of springs are single leaf, multiple leaf, torsion bar, rubber block, and air-filled.