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homework help, thank you! JRN Enterprises just announced that it plans to cut its...

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Finance

imagehomework help, thank you!
JRN Enterprises just announced that it plans to cut its next-year dividend, D. from $2.75 to $1.40 per share and use the extra funds to expand its operations. Prior to this announcement, JRN's dividends were expected to grow at 6% per year and JRN's stock was trading at $24.50 per share. With the new expansion, JRN's dividends are expected to grow at 12% per year indefinitely Assuming that JRN's risk is unchanged by the expansion, the value of a share of JRN after the announcement is closest to: A $24.50 OB. $52.64 O c. $26.80 D. $12.47

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