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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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