Expects annual dividends-pay constant dividend amount
Course:- Financial Management
Reference No.:- EM13942971

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Lyons Corp. expects annual dividends of $0.55, $0.85, $1.15 a share over the next three years, respectively. In year 4 and thereafter, Lyons expects to pay a constant dividend amount of $2.00 a share. The required rate of return for Lyons is 9.0%, and the currently this stock is selling for $20.52. Should you invest in this stock?

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