Cooperton Mining just announced it will cut its dividend from

$4.11

to

$2.67

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

$49.78.

With the planned expansion, Cooperton's dividends are expected to grow at a

4.8%

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?

The new price for Cooperton's stock will be

$enter your response here.

(Round to the nearest cent.)

Is the expansion a good investment? (Select from the drop-down menu.)

No, it is not

Yes, it is

a good investment.