The Dividend Growth Model Can Be Used to Compute the Cost

Multiple Choice

The dividend growth model can be used to compute the cost of equity for a firm in which of the following situations?
I.firms that have a 100 percent retention ratio
II.firms that pay a constant dividend
III.firms that pay an increasing dividend
IV.firms that pay a decreasing dividend

A) I and II only
B) I and III only
C) II and III only
D) I, II, and III only
E) II, III, and IV only