Common stock - value—Constant growth Personal Finance Problem. Elk County Telephone has paid the dividends shown in the following table over the previous 6 years:
Year Dividend per share
2015 ?$1.16
2014 $1.13
2013 $1.09
2012 $1.06
2011 $1.03
2010 $1.00
The? firm's dividend per share next year is expected to be $1.19.
a. If you can earn 11?% on? similar-risk investments, what is the most you would be willing to pay per? share?
b. If you can earn only 8?% 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?