Cooperton Mining just announced it will cut its dividend from $4.01 to $2.74 per share and use the extra funds to expand. Prior to the announcement, Cooperton's dividends were expected to grow at a 3.4% rate, and its share price was $50.66. 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 change Cooperton's risk.) Is the expansion a good investment?

The new price for Cooperton's stock will be $___. (Round to the nearest cent.)

Laurel Enterprises expects earnings next year of $ 3.91 per share and has a 40% retention rate, which it plans to keep constant. Its equity cost of capital is 9%, which is also its expected return on new investment. Its earnings are expected to grow forever at a rate of 3.6% per year. If its next dividend is due in one year, what do you estimate the firm's current stock price to be?

The current stock price will be $_____

Krell Industries has a share price of $21.11 today. If Krell is expected to pay a dividend of $0.84 this year and its stock price is expected to grow to $23.54 at the end of the year, what is Krell's dividend yield and equity cost of capital?

The dividend yield is ____%