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Use the information for the question(s) below. Von Bora Corporation is expected pay a dividend of $1.40 per share at the end of this year

Use the information for the question(s) below.

Von Bora Corporation is expected pay a dividend of $1.40 per share at the end of this year and $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.$20.65

B.$21.30

C.$23.15

D.$21.95

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