Question: Cooperton Mining just announced it will cut its dividend from $4 to $2.50 per share and use the extra funds to expand. Prior to the

Cooperton Mining just announced it will cut its dividend from $4 to $2.50 per share and use the extra funds to expand. Prior to the announcement, Coopertons dividends were expected to grow at a 3% rate, and its share price was $50. With the new expansion, Coopertons dividends are expected to grow at a 5% rate.

a. What share price would you expect after the announcement?

b. (Assume Coopertons risk is unchanged by the new expansion.) Is the expansion a positive NPV investment?

**please list out step by step actions, please show the formulas used, please DONT USE excel**

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