Which of the following statements is incorrect? Select one: O a. Investor A has a 2-year investment horizon while investor B usually holds stock for 10 years. If these two investors expect the same future dividend stream and they agree on the stock's riskiness, then investor A and B will be willing to pay the same price for the same company stock. Ob. A perpetual bond is similar to a no-growth common stock because both have definite lives. O c. A perpetual bond is similar to a preferred stock because both have indefinite lives. O d. The preemptive right is less important to the stockholders of publicly owned company than to those of closely held firms. Oe. A preferred stock is similar to a bond because it has a par value and a fixed dividend payment that will be paid before dividends are paid on the common stock. Which of the following statements is most correct? Select one: O a. Two firms with the same dividend and growth rate must also have the same stock price. Ob. The constant growth model is inappropriate for companies that never pay dividend. Oc The constant growth model cannot be applied to companies that expect zera dividend growth rate. Od The constant growth model is often appropriate for companies that the dividend growth rate is larger than its required rate of return on stock. O e. The constant growth model is inappropriate for mature companies with a stable history of growth. Which of the following statements is incorrect? Select one: O a Other things equal, the higher the required rate of return, the lower the stock price. O b. Other things equal, the higher the dividend growth rate, the higher the stock price. Other things equal, the higher the market value of debt, the higher the value equity O d. Other things equal, the investment holding period has no impact on the stock price. O e. Other things equal, the lower the dividends, the lower the stock price