Question: Cooperton Mining just announced it will cut its dividend from $4.07 to $2.47 per share and use the extra funds to expand. Prior to the

Cooperton Mining just announced it will cut its dividend from $4.07 to $2.47 per share and use the extra funds to expand. Prior to the announcement, Cooperton's dividends were expected to grow at a rate 3.4%, and its share price was $50.93. With the planned expansion, Cooperton's dividends are expected to grow at a rate 4.6%. 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 $

Is the expansion a good investment?

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