Which of the following statements is correct?
a. the constant growth model is often appropriate for evaluating start-up companies that do not have a stable history of growth but are expected to reach stable growth within the next few years.
b. if a stock has a required rate of return rs = 12% and its dividend is expected to grow at a constant rate of 5%, this implies that the stock's dividend yield is also 5%.
c. the stock valuation model, p0 = d1/(rs ? g), can be used to value firms whose dividends are expected to decline at a constant rate, i. e., to grow at a negative rate.
d. the price of a stock is the present value of all expected future dividends, discounted at the dividend growth rate.
e. the constant growth model cannot be used for a zero growth stock, where the dividend is expected to remain constant over time.