Question
Von Bora Corporation is expected pay a dividend of $2.00 per share at the end of this year and a $2.25 per share dividend at
Von Bora Corporation is expected pay a dividend of $2.00 per share at the end of this year and a $2.25 per share dividend at the end of the second year. Immediately after Von Bora pays the $2.25 per share dividend at the end of the second year, you expect Von Bora's stock price to be $22.00 per share. Von Bora's cost of equity capital is 10%. (4 points) At the end of the second year (e.g., at time t=2), immediately before Von Bora pays the $2.25 per share dividend, at what price would you expect shares of Von Boras stock to be selling? Round your answer to two decimal places and do not include any symbols such as "$". For example, a price of $53.67 would be entered as 53.67.
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