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Cooperton Mining just announced it will cut its dividend from $ 4 . 0 2 to $ 2 . 5 6 per share and use
Cooperton Mining just announced it will cut its dividend from $ to $ per share and use the extra funds to expand. Prior to the announcement, Cooperton's dividends were expected to grow at a rate, and its share price was $ With the planned expansion, Cooperton's dividends are expected to grow at a 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
Is the expansion a good investment? Select from the dropdown menu.
a good investment.
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