Which of the following statements is correct? It is appropriate to use the constant growth model to estimate stock value even if the dividend yield is never expected to become constant. The constant growth model takes into consideration the capital gains investors expect to earn on a stock. If a stock has a required rate of return rs=14% and if its dividend is expected to grow at a constant rate of 8%, this implies that the stock's dividend yield is also 8%. The price of a stock is the present value of all expected future dividends, discounted at the required rate of return plus dividend growth rate