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Which of the following statements concerning the constant-growth dividend valuation model is (are) correct? 1. One simple method of estimating the dividend growth rate is

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Which of the following statements concerning the constant-growth dividend valuation model is (are) correct? 1. One simple method of estimating the dividend growth rate is to analyze the historical pattern of dividends. II. The expected total return equals the return from capital gains plus the retum from dividends paid. II. The model is applicable to growth firms with initially high growh rates. V. The intrinsic value calculated using this method can change from one investor to another if their risk assessments, and therefore their required retums, differ. A. II and III only B. I, II and IV only C. I and 1/ only D. I. II and III only Which of the following statements concerning the constant-growth dividend valuation model is (are) correct? 1. One simple method of estimating the dividend growth rate is to analyze the historical pattern of dividends. II. The expected total return equals the return from capital gains plus the retum from dividends paid. II. The model is applicable to growth firms with initially high growh rates. V. The intrinsic value calculated using this method can change from one investor to another if their risk assessments, and therefore their required retums, differ. A. II and III only B. I, II and IV only C. I and 1/ only D. I. II and III only

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