Cooperton Mining just announced it will cut its dividend from

$3.92

to

$2.31

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

$51.94.

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

4.9%

rate. What share price would you expect after the announcement? (Assume that the new expansion does not changeCooperton's risk.) Is the expansion a good investment?