Cooperton Mining just announced it will cut its dividend from $ 4.14 to $ 2.27 per...

Cooperton Mining just announced it will cut its dividend from $ 4.14 to $ 2.27 per share and use the extra funds to expand. Prior to the announcement, Cooperton's dividends were expected to grow at a 3.2 % rate, and its share price was $ 48.86. With the planned expansion, Cooperton's dividends are expected to grow at a 4.7 % 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 [...]?

Expert Solution

I DID SUM EARLIER, AND AT THAT TIME, ROUNDING ISSUE WAS THERE. SO PLEASE CHECK AND LET ME KNOW, WHAT IS THE ROUNDING RULE HERE.

jeff jeffy answered 4 months ago

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