Common stock

valuelong dashConstant

growthPersonal Finance ProblemElk County Telephone has paid the dividends shown in the following table over the previous 6 years:

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(Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.)

Year	Dividend per share
20152015	$2.212.21
20142014	$2.162.16
20132013	$2.122.12
20122012	$2.082.08
20112011	$2.042.04
20102010	$2.002.00

. The firm's dividend per share next year is expected to be

2.25.

a.If you can earn

15%

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

12%

on similar-risk investments, what is the most you would be willing to pay per share?

c.Compare your findings in parts a and b, what is the impact of changing risk on share value?

a.If you can earn

15%

on similar-risk investments, the most you would be willing to pay per share is

$nothing.

(Round to the nearest cent.)