Common stock value: Constant growth Over the past 6 years, Elk County Telephone has paid the dividends shown in the following table.

Year Dividend per share

2019 $2.87

2018 2.76

2017 2.60

2016 2.46

2015 2.37

2014 2.25

The firms dividend per share in 2020 is expected to be $3.02.

If you can earn 13% on similar-risk investments, what is the most you would be willing to pay per share in 2019, just after the $2.87 dividend?

If you can earn only 10% on similar-risk investments, what is the most you would be willing to pay per share?