Choose all correct statements.

1. Dividend growth rate is equivalent to the dividend yield.

2. The total return on a stock is equal to the dividend yield plus the capital gains yield.

3.The benchmark PE ratio can be used to value the stock of firms that pay no dividends.

4.Assume the constant dividend growth model. An increase in the capital gains yield will increase the current value of a stock.

Choices

II, III and IV only

II only

II and IV only

II and III only

I and II only