JRN Enterprises just announced that it plans to cut its next-year dividend, D1, from $2.50 to $1.10 per share and use the extra funds to expand its operations. Prior to this announcement, JRN's dividends were expected to grow at 5% per year and JRN's stock was trading at $24.00 per share. With the new expansion, JRN's dividends are expected to grow at 10% 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. $20.31 B. $24.00 C. $46.15 D. $10.56 What is the present value (PV) of an investment that will pay $500 in one year's time, and $500 every year after that, when the interest rate is 5% ? A. $6,000 B. $8,000 C. $10,000 D. $5,000