Which of the following is true when valuing a stock using the dividend discount model?

Select one:

a.

The dividend discount model takes into account future cash flows only related to capital gains.

b.

The dividend discount model cannot be used to value stock.

c.

The dividend discount model takes into account future cash flows only related to dividends.

d.

The dividend discount model takes into account future cash flows that could either be dividends or capital gains from the sale of the stock.