Which one of the following statements is NOT true about zero-growth shares?
A) Dividend stays constant over time.
B) The cash flow pattern resembles a perpetuity with a constant cash flow.
C) Dividend payments are zero.
D) There is no growth in dividends over time.

Question

Quizplus · Accepted Answer

Zero-growth shares are stocks that have a constant dividend payout, which means they do not grow over time. Therefore, statement C is not true as it suggests that dividend payments are zero, which contradicts the definition of zero-growth shares. Statements A, B, and D are all true descriptions of zero-growth shares.

Which One of the Following Statements Is NOT True About