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Von Bora Corporation (VBC)is Expected to Pay a $2

Question 73

Multiple Choice

Von Bora Corporation (VBC) is expected to pay a $2.00 dividend at the end of this year.If you expect VBC's dividend to grow by 5% per year forever and VBC's equity cost of capital is 13%,then the value of a share of VBS stock is closest to:


A) $25.00
B) $40.00
C) $15.40
D) $11.10

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