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  3. a financial company was expected to pay a dividend

A financial company was expected to pay a dividend of $5 and investors expected no...

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Finance

A financial company was expected to pay a dividend of $5 and investors expected no growth in earnings/dividends with the share price at $30.

The company just announced it's investing in a Fintech platform which means they will cut their dividend to $2 and now investors expect growth in earnings/dividends to be 10% per year.

What will the share price be after the announcement?

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