The constant dividend growth model:
A) generally produces the same estimated cost of equity for a firm regardless of the source of information used to predict the rate of growth.
B) can only be used if historical dividend information is available.
C) ignores the risk that future dividends may vary from their estimated values.
D) assumes that both the dividend amount and the stock price are not constant over time.
E) uses beta to measure the systematic risk of the firm.
Correct Answer:
Verified
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