CHAPTER 7 QUIZ 16 TO 20 16. Under a non-constant growth model, the growth rate (g) is varied from time period to time period. 17. Under a non-constant growth model, Ke (required rate of return) is varied from time period to time period 18. Empirical evidence indicates that rising dividends are no guarantee that the associated common stock price will also rise in the short The current price of a stock should equal the future value of the expected dividend stream. 20. Dividend valuation models are best suited for firms in the expansion or maturity phase of their life cycle.