Which of the Following Statements Is Most Correct

question 60

Multiple Choice

Which of the following statements is most correct?

• A) The constant growth model takes into consideration the capital gains earned on a stock.
• B) It is appropriate to use the constant growth model to estimate stock value even if the growth rate never becomes constant.
• C) Two firms with the same dividend and growth rate must also have the same stock price.
• D) Statements a and c are correct.
• E) All of the statements above are correct.