Which one of the following is an example of diversifiable risk? O a. The Workers Compensation Premiums just increased nationwide. O b. The employees of Textile, Inc. just voted to go on strike. O c. The price of electricity just increased. Od. The government just imposed new safety standards for all employees. e. The government just lowered corporate income tax rates. The expected return of the portfolio considers the probability of various states of the economy. True False points Sive A potential problem associated with the use of the dividend growth model to compute the cost of equity is that the estimated cost of equity is sensitive to the estimated dividend growth rate. True False As illustrated using the dividend growth model, the total return on a share of common stock is comprised of a a. Dividend payout ratio and a required rate of return. Ob. Dividend yield and the present dividend. Oc Capital gains growth rate and a dividend growth rate. Od. Dividend yield and a capital gains yield. O e Capital gains yield and a dividend growth rate. As a means of determining a firm's cost of equity financing for an investment, a weakness in the dividend growth model is that the model is highly dependent upon the accuracy of the beta assigned to the firm. True False