The constant dividend growth model:

I. assumes that dividends increase at a constant rate forever

II. considers the dividend yield but ignores the capital gains yield.

III. states that the market price of a stock is only affected by the amount of the dividend.

IV. considers capital gains but ignores the dividends yield.

Select one:

a. I, II, and III only

b. III and IV only

c. I and III only

d. I only

e. I and II only