Dubai Metros stock price was at $100 per share when it announced that it will cut its

Question:

Dubai Metro’s stock price was at $100 per share when it announced that it will cut its dividends for next year from $10 per share to $6 per share, with additional funds used for expansion. Prior to the cut, Dubai Metro expected its dividends to grow at a 4 percent rate, but with the expansion, dividends are now expected to grow at 7 percent. How do you think the announcement will affect Dubai Metro’s stock price?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...