Which of the Following Statements Is FALSE of the Dividend-Discount

Multiple Choice

Which of the following statements is FALSE of the dividend-discount model?

A) We cannot use the dividend-discount model to value the stock of a firm with rapid or changing growth.
B) As firms mature, their growth slows to rates more typical of established companies.
C) The dividend-discount model values the stock based on a forecast of the future dividends paid to shareholders.
D) The simplest forecast for the firm's future dividends states that they will grow at a constant rate, i.e., forever.