Elk County Telephone has paid the dividends shown in the following table over the previous 6? years:
Year Divident Per Share
2015 $5.35
2014 5.05
2013 4.76
2012 4.49
2011 4.24
2010 4.00
The? firm's dividend per share next year is expected to be $5.67.
A) If you can earn 15% on similar-risk investments, what is the most you would be willing to pay per share?
B) If you can earn only 12% on? similar-risk investments, what is the most you would be willing to pay per? share?
C) According to the findings in parts a and ?b, as risk? decreases, the required rate of return _________
causing the share price to _______.