Summit Systems has an equity cost of capital of 11.0%, will pay a dividend of 2.00 in one year, and its dividends had been expected to grow by 70% per year. You read in the paper that Summit Systems has revised its growth prospects and now expects its dividends to grow at a rate of 2.5% per year forever a. What is the drop in value of a share of Summit Systems stock based on this information? b. If you tried to sell your Summit Systems stock after reading this news what price would you be likely to get? Why? a. wat is the crop in value or a share or Summe systems SOCK DSG on es normation The drop in value of a share of Summit Systems stock is $1(Round to the nearest cent.) b. If you tried to sell your Summit Systems stock after reading this news, what price would you be likely to get? The price of a share would likely be $ . (Round to the nearest cent) Why? (Select the best choice below) A. You would receive $23.53 because markets are efficient and would incorporate the information about the new growth rate immediately OB. You would receive $50.00 if you act very quickly because it takes a day or two for markets to incorporate the information about the new growth rato OC. You would recove $50.00 because when you bought the stock, the dividend growth rate was still 70% D. You would receive a orice betwen S2353 and $50.00 because you should oet a blend of the old and new arawih rato af dividends