Which of the following is/are TRUE regarding the constant dividend growth formula, P0 = D1/(ke-g)?

I) It assumes ke< g.

II) It assumes the dividends are growing at a constant rate g forever.

III) By the formula, the required rate of return on common stock can be shown to be equal to the sum of expected dividend yield and price appreciation yield.

Question 2 options:

	II and III only
	I and III only
	I, II and III
	I and II only