Von Bora Corporation (VBC)is Expected to Pay a $2

question 11

Multiple Choice

Von Bora Corporation (VBC) is expected to pay a $2.00 dividend at the end of this year.If you expect VBC's dividend to grow by 5% per year forever and VBC's equity cost of capital is 13%,then the value of a share of VBC stock is closest to:

• A)$25.00
• B)$40.00
• C)$15.40
• D)$11.10
• E)$10.00

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Definitions:

Total Fertility Rates

Total fertility rates represent the average number of children a woman is expected to have over her lifetime, given current birth rates.

Divorce Rates

Refers to the statistical measure of the number of divorces that occur in a population during a given year per 1,000 members of the population.

Marriage Rates

Statistics that indicate the frequency of marriages within a specified population during a certain time period.

American Population

The total number of people living in the United States, including all races, ethnicities, and ages.