1.	Which of the following statements about the dividend discount model is TRUE?
	A. The value of a stock will increase as its cost of equity increases
	B. In the constant growth model, it is assumed that the cost of equity grows at a constant rate forever
	C. In order to use the two-stage dividend discount model, it is necessary to assume that
	dividends grow at a constant rate in both the finite horizon and the infinite horizon
	D. The value of a stock will decrease as the growth rate of dividends increases
	E. The value of a stock is equal to the present value of the expected future dividends it will pay