Von Bora Corporation is expected 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 one year. The price would would expect to be able to sell a share of Von Bora stock in one year is closest to:

Answer

A. $24.10

B. $22.70

C. $23.15

D. $26.50

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## This question was asked on May 06, 2010 and answered on May 06, 2010.

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