Use the Information for the Question(s)below

question 78

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%.
-The price you would be willing to pay today for a share of Von Bora stock,if you plan to hold the stock for two years is closest to:

• A)$23.15.
• B)$20.65.
• C)$21.95.
• D)$21.90.

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Definitions:

Ethylene

A colorless flammable gas with the formula C2H4, used as a hormone in plants and an important industrial organic chemical in the production of polymers.

HOMO

An acronym for Highest Occupied Molecular Orbital, representing the highest energy molecular orbital containing electrons.

LUMO

The Lowest Unoccupied Molecular Orbital, which is the first molecular orbital available for the electron to occupy.

Cycloaddition

A type of chemical reaction where two or more unsaturated molecules combine to form a cyclic adduct, important in the synthesis of heterocyclic compounds.