The dividend growth model: Multiple Choice O assumes dividends increase at a decreasing rate. only values stocks at Time 0. cannot be used to value constant dividend stocks. can be used to value both dividend paying and non-dividend-paying stocks. O requires the growth rate to be less than the required return. The common stock of Water Town Mills pays a constant annual dividend of $2.25 a share. What is one share of this stock worth at a discount rate of 16.2 percent? Multiple Choice $13.89 $14.01 $14.56 O $13.79 O $13.28