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give the answer and how to get the output through excel for future hw references ve OFF evrard_Berk_DeMar insert Draw Page Layout Formulas Data Review

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ve OFF evrard_Berk_DeMar insert Draw Page Layout Formulas Data Review View Tell me X Calibri (Body) y 11 A A v ape Wrap Text BIU V . Merge & Center F x fox c D E a. What price would you be willing to pay for a share of Acap stock today, if you planned to hold the stock for two years? b. Suppose instead you plan to hold the stock for one year. For what price would you expect to be able to sell a share of Acap stock in one year? Given your answer to (b), what price would you be willing to pay for a share of Acap stock today, if you planned to hold the stock for one year? How does this price compare to your answer in (a)? C. Dividend in 1 year S 2.80 Dividend in 2 years $ 3.00 Share price in 2 years s 52 Equity cost of capital 10% 2. What price would you be willing to pay for a share of Acap stock today, if you planned to hold the stock for two years? Holding period (years) 2 Price per share b. Suppose instead you plan to hold the stock for one year. For what price would you expect to be able to sell a share of Acap stock in one year? Holding period (years) Price per share c. Given your answer to C), what price would you be willing to pay for a share of Acup stock today, if you planned to hold the stock for one year? How does this price compare to your answer in (a)? Price per share The price you would pay affected by the amount of time you hold the stock Requirements 7-10 Requirements 1 In cell D18, by using cell references, calculate the price that you would be willing to pay for the stock if you plan to hold it for two years (1 pt.). 2 In cell D24, by using cell references, calculate the price at which you would be able to sell the stock in one year (1 pt.) 3 In cell D28, by using cell references, calculate the price that you would be willing to pay for the stock if you plan to hold it for one year (1 pt.). Note Use cell D22 as the discount period. 35 4 In cell D29, type whether the price you would pay is or is not affected by the holding period (1 pr.). 36 17 35 10 41 16 7.10 esc FI 3o 888 94 * 1 2 3 A6 % 5 & 6 7 Q W E R T Y S J

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