1) Omega Inc. has a history of abnormally high growth due to general economic fluctuations. Estimating the cost of common equity using the discounted cash flow approach is difficult because:

a.the dividend yield is extremely difficult to estimate.

b.the proper growth rate is difficult to establish.

c.the market price of the common equity is very volatile.

d.the firm grows at a constant rate in perpetuity.

e.the firm's historical data of dividend yield is unavailable.