JRN Enterprises just announced that it plans to cut its dividend from $2.75 to $1.40 per share and use the extra funds to expands its operations. Prior to this announcement, JRN's dividends were expected to grow at 6% per year and urn's stock was trading at $24.00 per share, With the new expansions, JRN's dividends are expected to grow at 12% 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. $50.38

b. $25.65

c. $12.22

d. $24.00