XYZ Ltd. is a company with a remarkably stable dividend paying policy. It also chooses not to reinvest any of its earnings, and all profits are paid out as dividends to its investors. Yearly dividend per share in the past was $50 and there is no expectation of increase in the profits or in the dividends. You are considering buying 2000 shares and holding them for a period of 3 years, with an expected value at the end of $500 per share. The discount rate is given by the required rate of return, which is equal to 10.0%.

1) What is the maximum amount you should be willing to pay?

2) What would be the maximum amount you should be willing to pay, if the required rate of return was 5%?