Constant growth Blix Net services provides dedicated server facilities for small businesses. The company paid per share

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Constant growth Blix Net services provides dedicated server facilities for small businesses. The company paid per share dividends of €1.21, €1.37, €1.46, €1.61, €1.76, and €1.87, respectively, in the six years spanning 2015 to 2020.

The firm’s dividend per share in 2021 is expected to be €2.02.

a. If you can earn 10% on similar-risk investments, what is the most you would be willing to pay per share in 2020, just after the €1.87 dividend?

b. If you can earn only 12% on similar-risk investments, what is the most you would be willing to pay per share?

c. Compare and contrast your findings in parts a and b, and discuss the impact of changing risk on share value.

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