Which of the following assumptions would cause the constant growth stock valuation model (Gordon Model) to be invalid? A. The required rate of return is above 30 percent. B. The growth rate is negative. C. The growth rate is zero. D. The growth rate is greater than the required rate of return. E. None of the above assumptions would invalidate the model.

Which of the following assumptions would cause the constant growth stock valuation model (Gordon Model) to be invalid? A. The required rate of return is above 30 percent. B. The growth rate is negative. C. The growth rate is zero. D. The growth rate is greater than the required rate of return. E. None of the above assumptions would invalidate the model