Cooperton Mining just announced it will cut its dividend from $4.32 to $2.22 per share and use the extra funds to expand. Prior to the? announcement, Cooperton's dividends were expected to grow at a 2.9% ?rate, and its share price was $51.77. With the new? expansion, Cooperton's dividends are expected to grow at a 4.9% rate. (Assume? Cooperton's risk is unchanged by the new? expansion.)
a) What share price would you expect after the? announcement?
b) The equity cost of capital is ?%. (Round to two decimal? places.)
c) Is the expansion a positive NPV? investment?