Which One of the Following Statements Is Correct Concerning the Two-Stage

Multiple Choice

Which one of the following statements is correct concerning the two-stage dividend growth model?

A) G₁ cannot be negative.
B) P_t = D_t/R.
C) G₁ must be greater than G₂.
D) G₁ can be greater than R.
E) R must be less than G₁ but greater than G₂.