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The dividend growth model can be used to compute the cost of equity for a firm in which of the following situations? I. Firms that

The dividend growth model can be used to compute the cost of equity for a firm in which of the following situations? I. Firms that have a 100% retention ratio II. Firms that pay an unchanging dividend III. Firms that pay a constantly increasing dividend IV. Firms that pay an erratically growing dividend

I and II only

I and IV only

II and III only

I, II, and III only

I, III, and IV only

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