Common stock

valueConstant

growthPersonal Finance ProblemOver the past 6 years, Elk County Telephone has paid the dividends shown in the following table,

LOADING...

. The firm's dividend per share in

2023

is expected to be

$10.12.

a.If you can earn

15%

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

2022,

just after the

$9.73

dividend?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?

Question content area bottom

Part 1

a.If you can earn

15%

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

$enter your response here.

(Round to the nearest cent.)

Year	Dividend per share
2022	$9.73
2021	$9.36
2020	$9.00
2019	$8.65
2018	$8.32
2017	$8.00