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1. The next dividend for MVP Incorporated will be $2.00 per share. The dividends are anticipated to grow at 6%, forever. If the stock currently

1. The next dividend for MVP Incorporated will be $2.00 per share. The dividends are anticipated to grow at 6%, forever. If the stock currently sells for $23.00 per share, what is the required return rate?

a. 14.70%

b. 8.70%

c. 6.00%

d. 17.50%

2. Using the information in question #1 above, what is MVP Corporation's dividend yield?

a. 14.70%

b. 6.00%

c. 11.50%

d. 8.70%

3. Using the information in question #1, what is MVP Corporation's capital gains yield?

a. 8.70%

b. 6.00%

c. 14.70%

d. 2.70%

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