Question: Cooperton Mining just announced it will cut its dividend from $3.97 to $2.66 per share and use the extra funds to expand. Prior to theannouncement,

Cooperton Mining just announced it will cut its dividend from $3.97 to $2.66 per share and use the extra funds to expand. Prior to theannouncement, Cooperton's dividends were expected to grow at a 3.1% rate, and its share price was $49.63. With the plannedexpansion, Cooperton's dividends are expected to grow at a 4.6% rate. What share price would you expect after theannouncement? (Assume that the new expansion does not changeCooperton's risk.) Is the expansion a goodinvestment?

The new price for Cooperton's stock will be $__ (round to nearest cent)

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