What share price would you expect after the announcement

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Reference no: EM131527133

Cooperton Mining just announced it will cut its dividend from $3.82 to $2.42 per share and use the extra funds to expand. Prior to the announcement, Cooperton's dividends were expected to grow at a 3.3% rate, and its share price was $51.17. 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.)

Is the expansion a good investment? (Select from the drop-down menu.)

Reference no: EM131527133

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