Shares in Brothers Grimm, Inc., manufacturers of gingerbread houses, are expected to pay a dividend of $9.00 in one year and to sell for $92 per share at that time. How much should you be willing to pay today per share of Grimm under the following circumstances? Instructions: Enter all responses rounded to two decimal places. a. Consider a safe rate of interest of 5.8 percent and assume that investing in Grimm carries no risk. Grimm's share value would be $ . b. Consider a safe rate of interest of 10.8 percent and assume that investing in Grimm carries no risk.

Grimm's share value would be $ . c. Consider a safe rate of interest of 5.8 percent, but your risk premium is 4 percent. The share value today would be $ . Now assume that Grimm is not expected to pay a dividend, but the expected price is unchanged. Instructions: Enter all responses rounded to two decimal places.

d. Consider a safe rate of interest of 5.8 percent and assume that investing in Grimm carries no risk. Grimm's share value would be $ . e. Consider a safe rate of interest of 10.8 percent and assume that investing in Grimm carries no risk. Grimm's share value would be $ . f. Consider a safe rate of interest of 5.8 percent and a risk premium of 4 percent. Grimm's share value would be $ .