Use the Information for the Question(s)below

question 81

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

• A)6.0%.
• B)4.0%.
• C)6.5%.
• D)5.5%.

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Definitions:

Potsdam Conference

A meeting of the victorious Allied leaders after World War II, held in Potsdam, Germany, in 1945 to decide on the post-war reorganization of Germany and Europe.

Boundaries

Geographical lines or demarcations that define the limits of an area, territory, or geopolitical entity.

Forced Resettlement

The involuntary relocation of people from one area to another, often by a governmental or military force.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world’s nations, including all of the great powers, eventually forming two opposing military alliances: the Allies and the Axis.