The Constant Dividend Growth Model

question 32

Multiple Choice

The constant dividend growth model:

• A)is more complex than the differential growth model.
• B)requires the growth period be limited to a set number of years.
• C)is never used because firms rarely attempt to maintain steady dividend growth.
• D)can be used to compute a stock price at any point in time.
• E)most applies to stocks with differential growth rates.