Common stock valueConstant growth Personal Finance Problem Over the past 6 years, Elk County Telephone has paid the dividends shown in the following table,

year / dividend per share

2019 2.32 2018 2.25 2017 2.19 2016 2.12 2015 2.06 2014 2.00

The firm's dividend per share in 2020 is expected to be $2.39.

a.If you can earn 14% on similar-risk investments, what is the most you would be willing to pay per share in 2019, just after the $2.32 dividend?

b.If you can earn only 11% 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?