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Elk county telephone has paid the dividends shown in the following table over the previous 6 years The firm's dividend per share next year is

Elk county telephone has paid the dividends shown in the following table over the previous 6 years

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

$6.33.

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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