q12

Which of the following statements is true?

	A.	No rational investor should be willing to pay for a share of stock where the dividend is expected to decrease constantly over time
	B.	An important assumption of the constant growth model is that the dividend growth rate (g) must be positive
	C.	If a stocks dividend is expected to grow at a constant rate, then the growth rate of its price (price appreciation or capital gain) is exactly the same as the growth rate of its dividends
	D.	If stocks J and K are constant growth stocks, and have the same required rate of return, but the price of Stock J is lower than the price of Stock K, then Stock J must have a lower expected dividend yield
	E.	None of the above