Which of the following is NOT a problem with the dividend model approa

Which of the following is NOT a problem with the dividend model approach to estimating the cost of equity?

A) Some firms do not pay dividends.
B) Some firms pay dividends but do not follow a policy of constant growth.
C) Sometimes it is very difficult to estimate a constant dividend growth rate for a firm.
D) All of the above are problems with the dividend approach to estimating the cost of equity.

ANSWER

D