Question
Elk county telephone has paid the dividends shown in the following table over the previous 6 years Year Dividend per share 2015 6.08 2014 5.85
Elk county telephone has paid the dividends shown in the following table over the previous 6 years
| Year | Dividend per share |
| 2015 | 6.08 |
| 2014 | 5.85 |
| 2013 | 5.62 |
| 2012 | 5.41 |
| 2011 | 5.20 |
| 2010 | 5.00 |
a.If you can earn 12% on similar-risk investments, what is the most you would be willing to pay per share?
b.If you can earn only 9% 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?
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Public Finance In Theory And Practice
Authors: Holley Ulbrich
1st Edition
0324016603, 978-0324016604
