Question 8 JRN Enterprises just announced that it plans to cut its year1 dividend which was supposed to be $2.50 to $1.50 per share. The money will be used to fund its expansion. Prior to this announcement, dividends is expected to grow at 4% per year and share price was $25.00. With the expansion, dividends is expected to grow at 8% per year forever. What is the value of the share after the announcement assuming that JRN's risk (and therefore required return) is unchanged by the expansion