ABC Corporations dividend per share next year is expected to be RM3.02 and the firm expects dividends to grow at a rate of 5% per year for the foreseeable future.

If you can earn 13% on similar-risk investments, what is the most you would be willing to pay per share? If you can earn only 10% on similar-risk investments, what is the most you would be willing to pay per share? Compare and contrast your findings, and explain the impact of changing risk on share value.