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JRN enterprises just announced that it plans to cut its dividend from $2 50 to $1 10 per share and use the extra funds to expand its operations. prior to this accouncement JRN's dividends were expect

JRN enterprises just announced that it plans to cut its dividend from $2.50 to $1.10 per share and use the extra funds to expand its operations. prior to this accouncement, JRN's dividends were expected to grow at 6% per year and JRNs stock was trading at $26.00 per share. with the new expansion, JRNs dividends are expected to grow at 12% per year indefinitely. Assuming that JRBs risk is unchanged by the expansion, the value of a share lf JRN after the announcement is closest to:

 
$69.16
$30.43
$26.00
$11.44

Aug 16 2020 View more View Less

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