What share price would you expect after the


Cooperton Mining just announced it will cut its dividend from $4.67 to $2.47 per share and use the extra funds to expand. Prior to the? announcement, Cooperton's dividends were expected to grow at a 2.8% ?rate, and its share price was $50.13. With the new? expansion, Cooperton's dividends are expected to grow at a 5.1% rate.

a. What share price would you expect after the? announcement? (Assume? Cooperton's risk is unchanged by the new? expansion.)

b. Is the expansion a positive NPV? investment?

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Financial Management: What share price would you expect after the
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