Company ABC just announced that it will cut its dividend from $6.5 to $4.20 per share and use the extra funds to invest in a project. Prior to the announcement, ABCs dividends were expected to grow at a 3% rate, and its share price was $48. With the new expansion, the dividend growth rate is now at 4.8% per year. What share price would you expect after the announcement? a) $32.05 b) $35.77 c) $42.27 d) $48.00 e) None of the above

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