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:

Intellectual Property

Legal rights that arise from intellectual activity in the industrial, scientific, literary, and artistic fields, protecting creators' works and innovations.

Copyright

A form of intellectual property law that grants authors and creators exclusive rights to their original works.

Object-Oriented Program

A programming paradigm based on the concept of "objects", which can contain data and code to manipulate that data.

Markup Language Program

A system for annotating a document in a way that is syntactically distinguishable from the text, used to structure and display text and multimedia documents.