Cooperton Mining just announced it will cut its dividend from $4.17 to $2.63 per share...
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Cooperton Mining just announced it will cut its dividend from $4.17 to $2.63 per share and use the extra funds to expand. Prior to the announcement, Cooperton's dividends were expected to grow at a 3.2% rate, and its share price was $50.62. With the planned expansion, Cooperton's dividends are expected to grow at a 4.6% 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 $___
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