Question: NRV Ltd plans to reduce its dividends next year from $4.00 to $3.00 per share. Before this announcement, the company's dividends were expected to grow

NRV Ltd plans to reduce its dividends next year from $4.00 to $3.00 per share. Before this announcement, the company's dividends were expected to grow at 4% per annum forever and its shares were trading at $20.00 per share. After this announcement, the company's dividends are expected to grow at 10% per annum forever. Assuming that the required return on its shares is unchanged, the company's share price after the announcement will be closest to:

The price cannot be calculated without additional information.

$30.00

$21.40.

$12.50.

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