Question: What is the correct answer for this multiple choice question? 6.The constant dividend growth model: I. assumes that dividends increase at a constant rate forever.

What is the correct answer for this multiple choice question?

6.The constant dividend growth model:

I. assumes that dividends increase at a constant rate forever.

II. can be used to compute a stock price at any point in time.

III. states that the market price of a stock is only affected by the amount of the dividend.

IV. considers capital gains but ignores the dividend yield.

A. I only B. II only C. III & IV only D. I & II only E. I, II, and III only

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