Use the Information for the Question(s) Below

question 17

Multiple Choice

Use the information for the question(s) below.
Von Bora Corporation is expected pay a dividend of $1.40 per share at the end of this year and $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%.
-The price you would be willing to pay today for a share of Von Bora stock,if you plan to hold the stock for two years is closest to:

• A) $23.15
• B) $20.65
• C) $21.95
• D) $21.30

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Definitions:

Sugar

A general term for sweet-tasting, soluble carbohydrates, many of which are used in food.

Monosaccharides

Simple sugars that are the most basic form of carbohydrates, serving as energy sources and building blocks for more complex sugars.

Disaccharides

Carbohydrates composed of two monosaccharide molecules bonded together, such as sucrose and lactose, which are used by organisms as energy sources.

Polysaccharide

A carbohydrate molecule consisting of long chains of monosaccharide units bound together by glycosidic linkages.