Cooperton Mining just announced it will cut its dividend from $$392$ to $$222$ per share and use the extra funds to expand. Prior to the announcement, Cooperton's dividends were expected to grow at a $3\mathrm{.}1\%$ rate, and its share price was $$48\mathrm{.}67.$ With the new expansion, Cooperton's dividends are expected to grow at a $5\mathrm{.}1\%$ 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.N