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2 5 . Fastgrower inc. just announced that it plans to half its dividend from $ 4 to $ 2 per share and use the
Fastgrower inc. just announced that it plans to half its dividend from $ to $ per share and use the extra funds to expand its operations. Prior to this announcement, Fastgrower's dividends were expected to grow at per year and Fastgrower's stock was trading at $ per share. With the new expansion, Fastgrower's dividends are expected to grow at per year indefinitely. Assuming that Fastgrower's risk is unchanged by the expansion, the value of a share of Fastgrower after the announcement is closest to:
A $ B $ C $ D $
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