Common stock value: Constant growth Over the past $6$ years, Elk County Telephone has paid the dividends

shown in the following table.

The firm's dividend per share in $2020$ is expected to be $$3\mathrm{.}02.$

a$.$ 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\mathrm{.}87$ dividend?

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

c$.$ Compare and contrast your findings in parts a and $b,$ and discuss the impact of changing risk on share value.

Answers $($insert your answers in the highlighted cells; use cell references, equations, and functions wherever

a$.$

Dividend expected in $2020$

Dividend growth rate

Required return

Stock value

b$.$

Dividend expected in $2020$

Dividend growth rate

Required return

Stock value

c$.$