The ordinary share price of Chock-stock plc is £2.00 per share and the company has been paying a dividend of 30p per share for 10 years. The company plans to retain the next three years’ dividends to invest in a new project. The project cash flows will begin in year 4 and the company will pay an increased constant dividend of 40p per share from that year onwards. What is the change in the share price if the company puts the plan into effect? 

(a) Minus 24.7p 

(b) Minus 14.2p 

(c) Plus 5.8p 

(d) Plus 0.2p 

(e) Plus 17.6p