Question: Cooperton Mining just announced it will cut its dividend from $3.94 to $2.04 per share and use the extra funds to expand. Prior to the

 Cooperton Mining just announced it will cut its dividend from $3.94

Cooperton Mining just announced it will cut its dividend from $3.94 to $2.04 per share and use the extra funds to expand. Prior to the announcement, Cooperton's dividends were expected to grow at a 2.8% rate, and its share price was $48.28. With the new expansion, Cooperton's dividends are expected to grow at a 5.2% rate. What share price would you expect after the announcement? (Assume Cooperton's risk is unchanged by the new expansion.) Is the expansion a positive NPV investment? What share price would you expect after the announcement? The equity cost of capital is%. (Round to two decimal places.) The new share price will be $ (Round to the nearest cent.) Is the expansion a positive NPV investment? (Select from the drop-down menu.) In this case, cutting the dividend to expand a positive NPV investment

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