Which of the Following Statements Is Most Correct

Multiple Choice

Which of the following statements is most correct.

A) The stock valuation model, P0 = D1/(rs - g) , can be used for firms which have negative growth rates.
B) If a stock has a required rate of return rs = 12 percent, and its dividend grows at a constant rate of 5 percent, this implies that the stock's dividend yield is 5 percent.
C) The price of a stock is the present value of all expected future dividends, discounted at the dividend growth rate.
D) Statements a and c are correct.
E) All of the statements above are correct.