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:

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The price of a share of JRN's stock would likely increase due to the announcement of a stock repurchase plan. When a company buys back its own shares, it reduces the number of shares available in the market, which can increase the value of the remaining shares due to the reduced supply. Additionally, the repurchase announcement can signal to the market that the company's management believes the stock is undervalued, further boosting investor confidence and the stock price. Therefore, among the given options, $25.00 is the closest to the expected new price.

Assume That Management Makes a Surprise Announcement That JRN Will