Use the Information for the Question(s)below

question 50

Multiple Choice

Use the information for the question(s) below.
The JRN Corporation will pay a constant dividend of $3 per share,per year,in perpetuity.Assume that all investors pay a 20% tax on dividends and that there is no capital gains tax.The cost of capital for investing in JRN stock is 12%.
-Assume that management makes a surprise announcement that JRN will no longer pay dividends but will use the cash to repurchase stock instead.The price of a share of JRN's stock is now closest to:

• A)$20.00.
• B)$25.00.
• C)$18.00.
• D)$24.00.

---

Definitions:

Marijuana

A psychoactive drug from the Cannabis plant used for medical or recreational purposes.

Job Stress

The emotional and physical strain caused by one's work environment and duties, potentially leading to negative health outcomes.

Smoking Behavior

The actions or patterns of tobacco use, including the frequency and reasons behind smoking.

Intimate Relationships

Close personal associations that involve deep emotional connections, affection, and trust, including friends, family, and romantic partners.