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share in 2 0 2 0 is expected to be $ 2 . 5 3 . a . If you can earn 1 6 %

share in 2020 is expected to be $2.53.
a. If you can earn 16% on similar-risk investments, what is the most you would be willing to pay per share in 2019, just after the $2.43 dividend?
b. If you can earn only 13% 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?
a. If you can earn 16% on similar-risk investments, the most you would be willing to pay per share is $ (Round to the nearest cent.)
b. If you can earn 13% on similar-risk investments, the most you would be willing to pay per share is $.(Round to the nearest cent.)
c. According to the findings in parts a and b, as risk decreases, the required rate of return
causing the share price to
(Select from the drop-down menus.)
Data table
(Click on the icon here in order to copy the contents of the data table below
into a spreadsheet.)
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