Answer:
First we need to find the required rate of return on Cooperton Mining
We can use the DDM model for that
D*(1+G)/R-G=Price
Before the dividend cut
50.12=3.86*1.032/R-0.032
50.12R-1.60=3.98
R=0.11 or 11%
Now we can use R from this to find the expected share price after the dividend cut
2.48*1.049/0.11-0.049= $42.6 Will be the new expected price.
Step-by-step explanation: