The Constant Dividend Growth Model Is

Multiple Choice

The constant dividend growth model is:

A) generally used in practice because most shares have a constant growth rate.
B) generally used in practice because the historical growth rate of most shares is constant.
C) generally not used in practice because most shares grow at a non constant rate.
D) generally not used in practice because the constant growth rate is usually higher than the
Required rate of return.
E) based on the assumption the FTSE 100 represents a good estimate of the market index.