Homework: Chapter $7-$ Stock Valuation

Question $4,$ P$7-12($similar to$)$

HW Score: $50\%,4$ of $8$ points

$($HW$)$

Part $1$ of $3$

Points: $0$ of $1$

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, $.$ The firm's dividend per share in $2023$is expected to be $$4\mathrm{.}78.$

a$.$ If you can earn $148$ n similar$-$risk investments, what is the most you would be willing to pay per share in $2022$just after the $$4\mathrm{.}64$ dividend?

b$.$ If you can earn only $118$ n 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?

a$.$ If you can earn $14\%$ on similar$-$risk investments, the most you would be willing to pay per share is $$,($Round to the nearest cent.$)$

Data table

$($Click on the icon here $$ in order to copy the contents of the data table below into a spreadsheet.$)$

$\backslash$table$[[$Year$,$Dividend per share$],[2022,$$$4\mathrm{.}64$