Use the Information for the Question(s)below

question 2

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 capital gain from holding Von Bora stock for the first year is closest to:

• A)$0.95.
• B)$1.40.
• C)$1.85.
• D)$1.25.

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Definitions:

Vertebra

One of the individual bones that make up the vertebral column (spine), providing structural support and protection for the spinal cord.

Body Of Vertebra

The thick, oval segment of a vertebra forming the front of the vertebrae, supporting the majority of the body's weight.

Thoracic Region

The area of the body located between the neck and the abdomen, housing the chest organs, including the heart and lungs.

Vertebra

One of the individual bones that stack to form the vertebral column (spine), providing structural support and protecting the spinal cord.