单选题 Which of the following statements concerning security valuation is FALSE?

A、 An investor may determine the required rate of return for the dividend discount model (DDM) by adding a risk premium to the nominal risk-free rate.
B、 In the dividend discount model (DDM), the value of the firm is the present value of all future dividends.
C、 An investor can estimate the growth rate for the dividend discount model (DDM) by multiplying the firm"s return on equity (ROE) by the firm"s dividend payout ratio.

【正确答案】 C

【答案解析】An investor can estimate the growth rate for the DDM by multiplying the firm"s ROE by the retention rate, which is one minus the firm"s dividend payout ratio.