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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 from holding Von Bora stock for the first year is closest to:
General Agreement on Tariffs and Trade
An international trade treaty designed to boost economic recovery by reducing quotas and tariffs.
Free Trade Zones
Designated areas within a country where goods can be imported, handled, manufactured, and exported without direct intervention from customs authorities.
Mercosur
A South American trade bloc established to promote free trade and fluid movement of goods, people, and currency among its member countries.
Trans-Pacific Partnership
A trade agreement among multiple Pacific Rim countries aimed at deepening economic ties, reducing tariffs, and fostering trade to boost growth.
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