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Oswego Plumbing Works (ticker: OPW)just announced that it will cut next year's dividend, D. from...

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Oswego Plumbing Works (ticker: OPW)just announced that it will cut next year's dividend, D. from $2.25 to $1.20 per share and the firm will use the extra funds to expand operations. Prior to this announcement, OPW's dividends were expected to grow at 4% per year and OPW's common stock was trading at a price of $26.00 /share. With the new expansion. OPW'S dividends are expected to grow at 8% per year indefinitely Assuming the overall risk of the firm is unchanged by this expansion, the value of one share of OPW after the announcement is closest to: O A. $48.35 B. $26.00 OC. $25.78 OD. $13.87

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