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%.
-Suppose you plan to hold Von Bora stock for one year.The price you would expect to be able to sell a share of Von Bora stock at in one year is closest to:

A) $26.50
B) $22.20
C) $23.15
D) $24.10

Correct Answer:

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