Winrich Ltd$.$ just paid their annual dividend yesterday and their stock closed at $$50$ per share. In a press release early this morning, the company unexpectedly announced that they will reduce next year$$s annual dividend to $$1\mathrm{.}75$ from the $$3\mathrm{.}00$ they were anticipated to pay, and use the extra funds to recruit additional staff. Dividends had historically grown at $3\%$ per year and this rate was anticipated to remain constant forever. The firm risk is expected to remain the same, while the annual growth rate in dividends is expected to increase to $5\%$ next year.

A$)$ What is the discount rate?

B$)$ What share price would you expect after the announcement?

C$)$ What growth rate in dividends would be needed next year to make shareholders indifferent between the previously expected $$3\mathrm{.}00$ dividend and the reduced dividend of $$1\mathrm{.}75?$