Which of the following statements is most correct?

Select one:

a. The constant growth model is often appropriate for companies that never pay dividend.

b. Two firms with the same dividend and growth rate should have the same stock price.

c. The constant growth model is inappropriate for companies that the dividend growth rate is larger than its required rate of return on stock.

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

e. The constant growth model is inappropriate for companies that have negative dividend growth rates.