In 2006 and 2007, Kenneth Cole Productions (KCP) paid annual dividends of $0.76. Suppose KCP was acquired a. What would an investor with perfect foresight of the above been willing to pay for KCP at the start 2008, KCP paid an annual dividend of $0.35, and then paid no further dividends through 2012. the end of 2012 for $14.71 per share. 2006? (Note: Because an investor with perfect foresight bears no risk, use a risk-free equity cost of capital oa imply that the market for KCP stock was inefficient in 2006? Does your ans t 2006? (Note: Because an investor with perfect foresight bears no risk, use a risk-free a. What would an investor with perfect foresight of the above been willing to pay for KCP at the start equity cost of capital of 4.6%. ) The present value of the cash flows is S(Round to the nearest cent.) 2006? (Select all the choices that apply.) b. Does your answer to (a) imply that the market for KCP stock was inefficient A. Probably not. In 2006, investor expectations were likely very different-KCP might have continued to grow. B. Ex-post, the stock is likely to do better or worse than investors expectations. C. The market would be inefficient if the stock price was overpriced or underpriced relative to what would have been reasonable expectations 2006. D. The market would be inefficient only if the stock was underpriced relative to what would have been reasonable expectations in 2006