Question: This Question: 1 pt This Test: 25 pts possible 7 of 25 (5 complete) Sunnyfax Publishing pays out all its earnings and has a share

This Question: 1 pt This Test: 25 pts possible 7 of 25 (5 complete) Sunnyfax Publishing pays out all its earnings and has a share price of $37 00 In order to expand, Sunnyfax Publishing decides to cut its dividend from $3.00 to $2.00 per share and reinvest the retained funds. Once the funds are reinvested, they are expected to grow at a rate of 10 %. If the reinvestment does not affect Sunnyfax's equity cost of capital, what is the expected share price as a consequence of this decision? O A. $41.60 O B. $29.12 O C. $49.92 O D. $33 28 Click to select your answer, 13. B (similar to slides ch7-20, 21. Before the cut, 25.5-2.75/(R-05) eut P0-10 1578-0.1-17 301 R-0.1578. After the be here to search

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