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Business, 18.11.2020 17:30 Csmalls4412

Lollipop, Inc., is expected to grow at a constant rate of 9 percent. The company will pay a dividend of $2.75 next year and the current price of the stock is $37.35. If investors require a return of 18% on similar stocks, how much is the stock worth and is it a good buy?a. No, it is not a good buy because the stock is worth $30.56b. Yes, it is a good buy because the stock is worth 37.35c. No, it is not a good buy because the stock is worth $9.50d. None of the above

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