Question: + JRN Enterprises just announced that it plans to cut its next-year dividend, D,, from $2.75 to $1.50 per share and use the extra funds

+ JRN Enterprises just announced that it plans to cut its next-year dividend, D,, from $2.75 to $1.50 per share and use the extra funds to expand its operations. Prior to this announcement, JRN's dividends were expected to grow at 3% per year and JRN's stock was trading at $24.00 per share. With the new expansion, JRN's dividends are expected to grow at 6% 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: O A. $32.51 B. $24.00 C. $17.73 OD. $13.09

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