Xport International Just Announced That It Plans to Cut Its

question 7

Multiple Choice

Xport International just announced that it plans to cut its dividend from $1.75 to $1.00 per share and use the extra funds to expand its operations.Prior to this announcement,Xport's dividends were expected to grow at 5% per year and Xport's stock was trading at $35.00 per share.With the new expansion,Xport's dividends are expected to grow at 7% per year indefinitely.Assuming that Xport's risk is unchanged by the expansion,the value of a share of Xport after the announcement is closest to:

• A)$30.00
• B)$33.33
• C)$35.00
• D)$37.50
• E)$50.00

---

Definitions:

Support Families

Efforts or services provided to assist families, enhancing their well-being and helping them to meet various needs.

Infants

Very young children, typically under one year of age, who are in the earliest stage of childhood development.

Potty Training

The process of teaching a young child to use the toilet for urination and defecation, a key step in early childhood development.

Extra Duties

Tasks or responsibilities assigned to someone, especially a teacher or staff member, that go beyond their regular job description.