Von Bora Corporation (VBC) is expected to pay a $3.00 dividend at the end of this year. If you expect VBC's dividend to grow by 6% per year forever and VBC's equity cost of capital to be 13%, then the value of a share of VBC stock is closest to ________.
A) $42.86
B) $15.79
C) $25.72
D) $17.14
Correct Answer:
Verified
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