Cooperton Mining just announced it will cut its dividend from $

$4$

$.$

$1$

$7$

$$to $

$2$

$.$

$3$

$4$

$$per share and use the extra funds to expand. Prior to

the announcement, Cooperton's dividends were expected to grow at a

$3$

$.$

$1$

$\%$

$$rate$,$ and its share price was $

$4$

$8$

$.$

$1$

$3$

$.$

$$With the planned expansion,

Cooperton's dividends are expected to grow at a

$4$

$.$

$8$

$\%$

$$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.

$)$