JRN Enterprises just announced that it plans to cut its dividend payout in the next year (Div1) from $3.00 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 indefinitely at 4% per year and JRN's stock was trading at $25.50 per share. With the new expansion, JRN's dividends are expected to grow at 8% 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:
+3
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “JRN Enterprises just announced that it plans to cut its dividend payout in the next year (Div1) from $3.00 to $1.50 per share and use the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Home » Business » JRN Enterprises just announced that it plans to cut its dividend payout in the next year (Div1) from $3.00 to $1.50 per share and use the extra funds to expand its operations.