Answer this question based on the dividend growth model. If you expect the market rate of return to increase

Which one of the following is an underlying assumption of the dividend growth model?    A.  A stock has the same value to every investor. B.  A stock's value is equal to the discounted present value of the future cash flows which it generates. C.  A stock's value changes in direct relation to the required return. D.  Stocks that pay the same annual dividend have equal market values. E.  The dividend growth rate is inversely related to a stock's market price. Refer to section 8.1

29.

Answer this question based on the dividend growth model. If you expect the market rate of return to increase across the board on all equity securities, then you should also expect:    A.  an increase in all stock values. B.  all stock values to remain constant. C.  a decrease in all stock values. D.  dividend-paying stocks to maintain a constant price while non-dividend paying stocks decrease in value. E.  dividend-paying stocks to increase in price while non-dividend paying stocks decrease in value. Refer to section 8.1

30.	Which one of the following statements is correct concerning the two-stage dividend growth model?    A.  G1 cannot be negative. B.  Pt = Dt/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. Refer to section 8.1