7. The constant growth model used for evaluating the price of a share of common stock may also be used to find the price of perpetual preferred stock or any other perpetuity.

True

False

Which of the following statements is most correct?

	The constant growth model takes into consideration the capital gains earned on a stock.
	It is appropriate to use the constant growth model to estimate stock value even if the growth rate never becomes constant.
	Two firms with the same dividend and growth rate must also have the same stock price.
	Statements a and c are correct.
	All of the statements above are correct.