In 2006 and 2007, Kenneth Cole Productions (KCP) paid annual dividends of $0.75. In 2008, KCP paid an annual dividend of $0.32, and then paid no further dividends through 2012. Suppose KCP was acquired at the end of 2012 for $15.48 per share. a. What would an investor with perfect foresight of the above been willing to pay for KCP at the start of 2006? (Note: Because an investor with perfect foresight bears no risk, use a risk-free equity cost of capital of 5%.) b. Does your answer to (a) imply that the market for KCP stock was inefficient in 2006?