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1. My Favorite Ice Cream just paid a $2.00 dividend and expects to increase it by 5% each year. If the required return is 17%,

1. My Favorite Ice Cream just paid a $2.00 dividend and expects to increase it by 5% each year. If the required return is 17%, what is its dividend yield (i.e., what is D1/P0)?

a.

12.00%

b.

11.90%

c.

11.40%

d.

12.33%

e.

13.01%

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