lonos Inc. only pays dividends to its shareholders. The company currently pays out 60% of its earnings in the form of dividends. The company is considering expanding into a new product line. Without the new product line earnings per share (EPS) at the end of the year are expected to be $6 and are expected to grow at 5.6% annually in perpetuity. To finance the investment in the new product line the company will need to permanently cut its dividend payout ratio to 50%. With the new product line earnings per share (EPS) at the end of the year are expected to be $6 and are expected to grow at 6.5% annually in perpetuity. The firm's cost of equity capital (re) is 10%. Should the company reduce its dividend payout ratio to invest in the new product line?