mon stock value-Constant growth Personal Finance Problem Over the past 6 years, Elk County Telephone has paid the dividends shown in the foll hare in 2020 is expected to be $5.67. 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 $5.35 dividend? you can earn only 13% on similar-risk investments, what is the most you would be willing to pay per share? mpare your findings in parts a and b, what is the impact of changing risk on share value?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Common stock value-Constant growth Personal Finance Problem Over the past 6 years, Elk County Telephone has paid the dividends shown in the following table,
per share in 2020 is expected to be $5.67.
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 $5.35 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?
C
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.)
Data table
Year
2019
2018
2017
2016
2015
2014
Print
Dividend per share
$5.35
$5.05
$4.76
$4.49
$4.24
$4.00
Done
The firm's dividend
- X
Transcribed Image Text:Common stock value-Constant growth Personal Finance Problem Over the past 6 years, Elk County Telephone has paid the dividends shown in the following table, per share in 2020 is expected to be $5.67. 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 $5.35 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? C 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.) Data table Year 2019 2018 2017 2016 2015 2014 Print Dividend per share $5.35 $5.05 $4.76 $4.49 $4.24 $4.00 Done The firm's dividend - X
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