_{s}= 12% and its dividend is expected to grow at a constant rate of 5%,then the stock's dividend yield is also 5%. C) The stock valuation model,P

_{0}= D

_{1}/(r

_{s}- 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,wherein the dividend is expected to remain constant over time.