MC just announced that it plans to cut its dividend payout in the next year (Div1) from $3.00 to $1.50 per share and use the extra funds to expand its operations. Prior to this announcement, JMC 's dividends were expected to grow indefinitely at 3% per year and JMC 's stock was trading at $25.50 per share. With the new expansion, JMC 's dividends are expected to grow at 6% per year indefinitely.

Assuming that JMC 's risk is unchanged by the expansion, the value of a share of JMC after the announcement is closest to

A. $17.11

B. $25.50

C. $20.74

D. $16.23