The dividend growth model cannot be used to compute the cost ofequity for a firm that:

A. Pays an increasing dividend.

B. Reduces its dividend on a regular basis.

C. Has a dividend payout ratio of 100 percent.

D. Pays a constant dividend year after year.

F. Has a retention ratio of 100 percent.

Answer rating: 100% (QA)

The dividend growth model cannot be used to compute the cost of equity for a firm that F Has ... View the full answer