In the Constant-Growth Dividend Valuation Model,the Required Rate of Return

Multiple Choice

In the constant-growth dividend valuation model,the required rate of return on common stock (i.e.,cost of equity capital) can be shown to be equal to the sum of the dividend yield plus the ____.

A) yield-to-maturity
B) present value yield
C) risk-free rate
D) dividend growth rate
E) none of the above