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Sun unlimited expects earnings per share of $2.40 next year. The firm pays out all its earnings as dividends, and based on expectations of no

Sun unlimited expects earnings per share of $2.40 next year. The firm pays out all its earnings as dividends, and based on expectations of no growth, the firms common stock is selling for $20. If the company cuts its payout to 60% and plans to invest in an expansion with an expected ROI OF 10%, what is the expected stock price after the dividend cut? should the firm cut its dividend?

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