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:
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 the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
The charleston company is a relatively small, privately owned firm. last year the company had an after-tax income of $15,000 and 10,000 shares were outstanding.
Answers (1)
The most likely reason a firm would pay its sales representatives a commission rather than a salary is that it wants to
Answers (1)
Is it possible for a company to initiate two products that target the same market that are not mutually exclusive?
Answers (1)
On December 31, a company has the following bank accounts and corresponding cash balances:California BankOperating - Summit Ridge ($400,000) Operating - Bakersville 300,000Operating - Smithville 50,000Savings 500,000Sedona BankChecking ($375,000)
Answers (1)
Olive Corp. currently makes 20,000 subcomponents a year in one of its factories. The unit costs to produce are: Per unit Direct materials $ 12 Direct labor 8 Variable manufacturing overhead 12 Fixed manufacturing overhead8 Total unit cost #40 An
Answers (1)
New Questions in Business
Candy Claws Company gathered the following reconciling information in preparing its August bank reconciliation: Cash balance per books, 8/31 $19,500 Deposits in transit 900 Notes receivable and interest collected by bank 4,800 Bank charge for check
Answers (1)
Understanding where the company is competitive requires developing quantitative strength ratings for the company and key rivals on each industry key success factor and each pivotal resource, capability, and value chain activity. Select one: a.
Answers (1)
In the soft drink market, an increase in the price of sugar, a necessary ingredient for soft drinks, and an increased concern about tooth decay caused by the consumption of soft drinks will result in which of the following?
Answers (1)
A benefit of using a debit or credit card instead of cash is that it provides a paper record of a perchase. When might a proof ownership be needed? A. when applying for a credit card. B. When claiming a warranty. C. When using a cash card. D.
Answers (2)
A local insurance company has worked closely with an area real estate firm in writing mortgage insurance as well as other insurances such as health and accident policies to newcomers in a small university town.
Answers (1)