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(Common stock valuation) Dubai Metro's stock price was at $100 per share when it announced that it will cut its dindend for next year from

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(Common stock valuation) Dubai Metro's stock price was at $100 per share when it announced that it will cut its dindend for next year from 58 per share to $4 per share, with additional funds used for expansion Prior to the dividend cut, Dubai Metro expected its dividends to grow at a 7 percent rate, but with the expansion, dividends are now expected to grow at 10 percent. How do you think the announcement will affect Dubai Metro's stock price? a. What is the investor's required rate of return Dubai Metro's stock? % (Round to two decimal places.) b. What would be the price of Dubai Metro's stock if they cut the dividend to S4? (Round to the nearest cent) C. How do you think Dubai Metro's stock price will react to the announcement? (Select from the drop-down menu.) If Dubai Metro were to cut the dividend, the price of the common stock will decrease increase not change Enter your answer in each of the answer boxes

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