• Which of the following is true regarding the use of the dividend growth model for estimating the cost of equity capital?A.The model works particularly well for companies that maintain a mostly unsteady dividend growth rate.
• B.The model explicitly considers risk.
• C.A key advantage to this model is its high degree of complexity.
• D.The results from this model are not sensitive to changes in the dividend growth rate.
• E.One method of estimating future growth rates is the use of historical growth rates.