Question

Pick the correct statement from below. a. Stocks can only be assigned one dividend growth rate. b. Preferred stocks generally have variable growth rates. c. Dividend growth rates must be either zero or positive. d. All stocks can be valued using the dividend discount models. e. Stocks can have negative growth rates.

Answer 1

Answer:

e. Stocks can have negative growth rates.

Explanation:

According to the given options, the option e is correct as the growth rate could never be zero and positive as it is not necessary that the growth rate should be same or constant

But in the other cases the things can be changed like the stock could assigned to more than one dividend growth rate, etc

Therefore the option e is correct