The dividend-growth model, V=kgD0(1+g) suggests that an increase in the dividend growth rate will increase the value of a stock. However, an increase in the growth may require an increase in retained eamings and a reduction in the current dividend. Thus, management may be faced with a dilemma: current dividends versus future growth. As of now, investors' required return is 10 percent. The current dividend is $1 a share and is expected to grow annually by 4 percent, so the current market price of the stock is \$17.33. Management may make an investment that will increase the firm's growth rate to 6 percent, but the investment will require an increase in retained earnings, so the firm's dividend must be cut to $0.5 a share. Should management make the investment and reduce the dividend? Round your answer to the nearest cent. The value of the stock to $ , so the management make the investment and decrease the dividend