Use the Information for the Question(s)below

question 83

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 on purchasing Von Bora stock in one year,right after the $1.40 dividend is paid.You then plan on selling your stock at the end of year two,right after the $1.50 dividend is paid.The capital gain rate that you will receive on your investment is closest to:

• A)4.00%.
• B)3.75%.
• C)6.25%.
• D)3.50%.

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Definitions:

Antisocial

Exhibiting behaviors that are detrimental to or devoid of consideration for the well-being of others; often misanthropic or harmful.

Anger

A feeling that can range from slight annoyance to severe anger and wrath, usually sparked by perceived injustices or offenses.

Implicit Attitude

An unconscious and automatic association or evaluation regarding a person, object, or concept.

Deliberate Attitude

An intentional and conscious stance or perspective adopted towards specific issues, subjects, or situations.