Which of the statements is FALSE? Question 26 options:

a) The dividend growth model requires that a firm has a cash dividend history that shows a constant dividend or a positive growth in dividends.

b) A problem with using the dividend growth model is it appears to underestimate the expected return for some stocks.

c) A problem with using the dividend growth model is it produces a negative expected return whenever a firm cuts its dividends.

d) A problem with using the dividend growth model is it appears to underestimate the expected return for all stocks.