Cooperton Mining just announced it will cut its dividend from $4 to $2.50 per share and use the extra funds to expand. Prior to the announcement, Cooperton's dividends were expected to grow at a 3% rate, and its share price was $50. With the new expansion, Cooperton's dividends are expected to grow at a 5% rate. What share price would you expect after the announcement? (Assume Cooperton's risk is unchanged by the new expansion.) Is the expansion a positive NPV investment?   

Posted Date: 3/23/2013 5:22:54 AM | Location : United States

Ask an Expert

Related Discussions:- Calculate the share price, Assignment Help, Ask Question on Calculate the share price, Get Answer, Expert's Help, Calculate the share price Discussions

Write discussion on Calculate the share price
Your posts are moderated

Write your message here..

Related Questions

A firm is evaluating two machines, A firm is evaluating two machines. The f... A firm is evaluating two machines. The first costs $250,000 and will require annual maintenance of $30,000 per year for 10 years. At the end of 10 years, the salvage value will b

Corporate accounting and accounting for sole proprietorship, Q. Corporate a... Q. Corporate accounting and accounting for sole proprietorship? Several textbook authors use a sole proprietorship and a partnership form of business ownership to exemplify acc

Question, What is the implication of applying accounting concepts wrongly What is the implication of applying accounting concepts wrongly

Explain about pegboard system, Q. Explain about pegboard system? One mo... Q. Explain about pegboard system? One more innovation in manual systems was the one write or pegboard system. Beside creating one document and aligning other records under it o

CANADA PENSION PLAN REPORTING REQUIREMENTS ON THE T4, SCENARIO In May of t... SCENARIO In May of the current year, your employer received a PIER report from the CRA that identified Canada Pension Plan (CPP) contribution deficiencies for employees in the org

Calculate breakeven analysis, Breakeven Analysis - I really need help calcu... Breakeven Analysis - I really need help calculating this. Our company's breakeven point occurs after the agency consecutively yields two months of positive net income. This a

Account, I want to learning Accouny basic I want to learning Accouny basic

What is chart of accounts explain, Q. What is Chart of accounts explain? ... Q. What is Chart of accounts explain? The chart of accounts is a absolute listing of the titles and numbers of all the accounts in the ledger. The chart of accounts is able to

Illustrate a simple accounting system, Q. Illustrate a simple accounting sy... Q. Illustrate a simple accounting system? James Stevens was captivating an accounting course at State University. as well he was helping companies find accounting systems that

High-fiber diet for diverticular disease, Q. High-fiber Diet for diverticul... Q. High-fiber Diet for diverticular disease? For mild symptoms, a clear liquid diet is recommended. More serious cases may require hospitalization, intravenous feeding to rest