Dubai Metro's stock price was at $100 per share when it announced that it will cut its dividend for next year from $10 per share to $6 per share, with additional funds used for expansion. Prior to the dividend cut, Dubai Metro expected its dividends to grow at a 4 percent rate, but with the expansion, dividends are now expected to grow at 7 percent. How do you think the announcement will affect Dubai Metro's stock price?

a. What is the investor's required rate of return for Dubai Metro's stock?___%. (Round to two decimal places.)

(Common stock valuation) Dubai Matro's stock price was at $100 per share when it announced that it will cuf its dividend for naxt year feom 310 per ahare to 56 per share, with adeitonai Ands used for expantion. Prior to the dividend cut, Dubaice Metro expected its dividends to grow at a 4 percent rale, but wath the expantion, didedends ave now eupected to grow at 7 percent. How do you think the announcement will aflect Dubai Metrons ntock price? a. What is the investor's required rase of return for Dubai Motro's stock? (Round to two decimal places:)