1. Which of the following statements is true?

I. The dividend growth model only holds if, at some point in time, the dividend growth rate exceeds the stocks required return.

II. An increase in the dividend growth rate will increase a stocks market value, all else the same.

III. An increase in the required return on a stock will increase its market value, all else the same.

a. I only

b. II only

c. III only

d. I and III only