a companys intrinsic value was $25$ per share, reflecting earnings expectations of $2\mathrm{.}5$ per share in the next year and a dividend of $1\mathrm{.}25$ per share, both of which were expected to expand at a $5\%$ rate in perpetuity. The company just announced it will retain more earnings to fund an expansion and will permanently reduce its payout ratio from $50\%$ to $40\%$