Can the dividend-discount model handle negative growth rates? No, because the model works as long as growth rate is smaller than the cost of equity and negative growth rate is smaller than the cost of equity. No, the model can only handle positive growth rate. Yes, the model works as long as growth rate is larger than the cost of equity. O Yes, because the model works as long as growth rate is smaller than the cost of equity and negative growth rate is smaller than the cost of equity. Yes, the model works as long as growth rate is larger than the cost of equity and negative growth rate is smaller than the cost of equity