Cooperton Mining just announced it will cut its dividend from

$4.05

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

3.1%

rate, and its share price was

$51.25.

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?

Cooperton Mining just announced it will cut its dividend from $4.05 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 3.1% rate, and its share price was $51.25. 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 $1. (Round to the nearest cent.) Is the expansion a good investment? (Select from the drop-down menu.) V a good investment