Answer:
b. The constant growth model implies that dividend growth remains constant from now to infinity.
Explanation:
The constant growth model is also known as Gordon growth model.
The growth model represents one of the ways of valuing stock which is based on the assumption that the dividends from a purchased stock will continue to rise at a uniform growth rate infinitely.
The assumption of the constant growth model can be used to calculate the fair amount to pay for the purchase of a stock.
