Tyrion L.'s Gadgets Inc. is trying to decide whether to cut its expected dividends for next year

Question:

Tyrion L.'s Gadgets Inc. is trying to decide whether to cut its expected dividends for next year from $8 per share to $5 per share in order to have more money to invest in new projects. If it does not cut the the firm's expected rate of growth in dividends will be 5 percent per year, and the price of its will be $100 per share. However, if it cuts the the growth rate is expected to rise to 8 percent in the future. Assuming that the investor's required rate of return does not change, what would you expect to happen to the price of Tyrion L.'s Gadgets' if the firm cuts the to $5? Should Tyrion L.'s Gadgets cut its Support your answer as best as you can.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...