Use the Information for the Question(s)below

question 8

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

• A)3.5%.
• B)4.0%.
• C)6.0%.
• D)4.5%.

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Definitions:

Central

Pertaining to the main or most important part; often used in a variety of contexts to denote centrality or significance.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for action by triggering the fight-or-flight response during stressful situations.

Parasympathetic Nervous System

A branch of the autonomic nervous system responsible for conserving energy and lowering the body's metabolic rate, often referred to as the "rest and digest" system.

Somatic

Pertaining to the body, as opposed to the mind.