Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. homework help, thank you! jrn enterprises just an

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

80.2K

Verified Solution

Question

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

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Accounting
1.2K views

A brief description of three core business services provided by bank and security and privacy needs...

Electrical Engineering
1.2K views

A discrete system is described by the difference equation y(n)= 2.5y(n-1)-y(n-2)+3x(n)+3x(n-2) a. Using Z-transform, Determine all possible impulse...

Advance Math
1.2K views

Name and sketch two ways in which an open method for root finding can fail to...

Accounting
1.2K views

How do you calculate the multi product breakeven point and level of activity required to meet...

Basic Math
1.2K views

17 Simplify 0 B C D 7x 42 x 13x 42 x 6 X 10...

Calculus
1.2K views

Part 1 of 2 08 1 A and B be independent events with P A...

Algebra
1.2K views

ework aspx homeworkld 307285248q eir results are shown in the table What is th

Accounting
1.2K views

Allison Corporation acquired all of the...

Accounting
1.2K views

The following information pertains to a manufacturing company which uses weighted average method: Work in...

Accounting
1.2K views

Required information Use the following information for the Exercises below. (Algo) [The following information applies...

Accounting
1.2K views

Accounting type Question: Which is not included in current liability- A....

Accounting
1.2K views

Juno Company had $500 of office supplies available at the beginning of the current year....