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Elk County Telephone has paid the dividends shown in the following table over the previous 6 years: Year / Dividend per share 2015 $6.96 2014

Elk County Telephone has paid the dividends shown in the following table over the previous 6 years:

Year / Dividend per share

2015 $6.96
2014 $6.75
2013 $6.56
2012 $6.37
2011 $6.18
2010 $6.00

The firm's dividend per share next year is expected to be $7.16.

A. If you can earn 15% on similar-rish 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. According to the findings in part a and b, as risk decreases, the required rate of return (increases/decreases), causing the share price to (fall/rise)

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