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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
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 only one year. Your capital gain rate from holding Von Bora stock for the first year is closest to: . O A. 4.0% OB. 4.5% O C. 6.0% OD. 3.5%
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