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Use the information for the question(s) below
Use the information for the question(s) below. Suppose you've just purchased Von Bora Corporation stock. The stock is expected to pay a dividend of $2 per share at the end of this year and a $3.5 per share at the end of the second year. You expect Von Bora's stock price to be $20 at the end of two years. Von Bora's equity cost of capital is 13%. Suppose you plan to hold Von Bora stock for one year. The price one would expect to be able to sell a share of Von Bora stock a year from today is closest to: $15.7 O $20.8 O $23.2 O $20.2 $17.7
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