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The cost of capital for common stock is (D1/Po)+g. Which of the following statements is true of this model? 1. The firm must pay a

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The cost of capital for common stock is (D1/Po)+g. Which of the following statements is true of this model? 1. The firm must pay a dividend to be able to use this model II. The growth rate (g) can be changed to reflect expected dividend growth III. The market price-to-earnings ratio is not affected by the model Select one: O A only OB. I and II only OC. I and Ill only D. II, and

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