Use the Information for the Question(s) Below

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) $23.15
B) $20.65
C) $21.95
D) $21.30

Correct Answer:

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