JRN Enterprises just announced that it plans to cut its dividend from $2.50 to $1.50 per share and use the extra funds to expand its operations. Prior to thisannouncement, JRN's dividends were expected to grow at 6% per year andJRN's stock was trading at $24.50 per share. With the newexpansion, JRN's dividends are expected to grow at 12% per year indefinitely. Assuming thatJRN's risk is unchanged by theexpansion, the value of a share of JRN after the announcement is closestto:

A.

$ 14.70

$14.70

B.

$ 24.50

$24.50

C.

$ 35.68

$35.68

D.

$ 59.47