Which one of the following statements is true?

The dividend growth model:

I. assumes that dividends increase at a constant rate forever.

II. can be used to compute a stock price at any point in time.

III. can be used to value zero-growth stocks.

IV. requires the growth rate to be less than the required return.

A. I and III only

B. II and IV only

C. I, III, and IV only

D. I, II, and IV only

E. I, II, III, and IV

Explain why