Cooperton Mining just announced it will cut its dividend from $3.95 to $2.38 per share and use the extra funds to expand. Prior to the announcement, Cooperton’s dividends were expected to grow at a 3.5% rate, and its share price was $48.14. With the planned expansion, Cooperton’s dividends are expected to grow at a 4.9% rate.

What share price would you expect after the announcement? (Assume that the new expansion does not change Cooperton’s risk.) Is the expansion a good investment?