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. $21.40. $30.00 $12.50 Market analysts expect the earnings per share of Kazza Inc to be $1.80 next year. The earnings per share are expected to grow at 5% p.a. forever and the firm typically retains 60% of its earnings. Analysts believe that this policy will continue in the foreseeable future. If investors require a return of 10%, the company's expected (or forward) price-to-earnings ratio will be closest to: 6.00. 12.40 12.00. 8.00