1) Which of the statements is the most CORRECT?

a) Under Discounted Dividend Model, the Constant Growth Model can be used to estimate the intrinsic value of a stock only if past dividends of the stock have been growing at a constant rate.

b) The only way to estimate the intrinsic value of a stock that does not pay dividends is to use the Multiples of Comparable Firms Method.

c) Since Preferred stock is less risky than Common Stock, the price of a company's Preferred Stock will be traded below the price of its Common Stock

d) From the company's perspective, issuing Common Stock is less risky than issuing Bonds.

e) Holders of common shares have legal right to demand dividend payments from the company if the company is profitable in a year.