Which of the following statements is most correct? Explain why.

a. Two firms with the same dividend and growth rate can have different stock prices.

b. The constant growth model is often appropriate for companies that never pay dividends.

c. The constant growth model cannot be applied to companies that expect a zero dividend growth rate.

d. The constant growth model is inappropriate for mature companies with a stable history of growth.

e. The constant growth model is often appropriate for companies whose dividend growth rate is larger than its required rate of return on stocks.