JRN Enterprises just announced that it plans to cut its next-year dividend, D1, from $2.50 to $1.50 per share and use the extra funds to expand its operations. Prior to this announcement, JRN's dividends were expected to grow at 4% per year and JRN's stock was trading at $24.50 per share. With the new expansion, JRN's dividends are expected to grow at 8% per year indefinitely. Assuming that JRN's risk is unchanged by the expansion, the value of a share of JRN after the announcement is closest to: A. $40.30 B. $24.50 C. $24.18 D. $14.70 An annuity is set up that will pay $1,500 per year for eight years. What is the present value (PV) of this annuity given that the discount rate is 4% ? A. $10,099 B. $6,059 C. $12,119 D. $14,139 Since your birth, your grandparents have been depositing $120 into a savings account every month. The account pays 9% interest annually. Immediately after your grandparents make the deposit on your 18 th birthday, the amount of money in your savings account will be closest to: A. $64,362 B. $38,617 C. $90,107 D. $77,234