試題詳解

11. NUK Industries just announced that it will cut its dividend from $3.00 to $2.00 per share and use the extra funds to expand its operations. NUK dividends were expected to grow at a 2% rate, and its share price was $37.50. With the new expansion, NUK dividends are expected to grow at a 5% rat
(E) NUK's share price following this announcement should be:
(A) $40.00.
(B) $20.00.
(C) $37.50.
(D) $30.00.