According to the dividend growth model,

I. a stock must have the same value to all investors

II. a stock's value changes in inverse relation to the required return

III. a stock's market price varies directly with its dividend growth rate

IV. stocks that pay the same annual dividend have equal market values

V. a stock's value is equal to the discounted present value of the future cash flows which it generates

Multiple Choice

• I, II, III and IV only

• I and II only

• III, IV and V only

• II, III and V only

• I, II and III only