Question

Which one of the following statements is correct? Multiple Choice Stocks can only be assigned one dividend growth rate. Preferred stocks generally have variable growth rates. Dividend growth rates must be either zero or positive. All stocks can be valued using the dividend discount models. Stocks can have negative growth rates.

Answer 1

Answer:

Stocks can have negative growth rates.

Explanation:

The growth rate of stocks can be negative zero and positive. Hence, it is not necessary that the growth rate should be constant. Hence, the correct option in the following statement is "Stocks can have negative growth rates"