I may be wrong here, but it seems we have been around 17 to 18% in dividend yeild. So with the upcoming cut, and we stay in the 17 to 18% yeild range the price will need to drop to $4.75. That works out to .80 dividend.
If the investment community believes that the new dividend is sustainable, RSO will probably stay in the 14% to 15% area for awhile, then move up towards a 12% or so yield in time. If not, then the stock will go down and the yield will probably go back to the 17% to 18% range. It's a wait and see on this, pending the upcoming earnings report IMO.
While the probable dividend cut to .20 / quarter accounts for today's drop in share price, keep in mind that at the current share price of $5.57 we are still looking at over a 14% yield. In this era of low yields, the anticipated dividend would still represent a great return. Considering a book value of $5.66 ,and current leverage of 3.6 x ( down from 10 x ), I don't see much downside risk.