in 2006 and 2007, Kenneth Cole Productions paid annual dividends of $0.67. in 2008, they paid an annual dividend of $0.35, and then paid no further dividends through 2012. suppose they were acquired at the end of 2012 for $14.54 per share.

a) what would an investor with perfect foresight of the above been willing to pay for KCP at the start of 2006? (use a risk free equity cost of capital of 4.7%)

b) does your answer to part a imply that the market for KCP stock was inefficient in 2006?