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Suppose Acap Corpocation will pay a dividend of $2.80 per share at the end of this year and $3.00 per share next year You expect

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Suppose Acap Corpocation will pay a dividend of $2.80 per share at the end of this year and $3.00 per share next year You expect Acap's atock price to be 552.00 in two years. Assume that Acap's equity cost of capital is 10.0%. 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 hstead 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? c. Given your answer in (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 compare to your answer in (a)? a. What price would you be willing to pay for a share of Acap stock today, if you planned to hoid the stock for wo years? If you plan to hold the stock toe two years, the price you would pay for at share of Acap ssock today is s (Round to the nearest cent) b. Suppose instead you plan to hold the stock for one year. For what price would you expect to be able to seil a share of Acap stock in one year? The price for which you expect to sell a share of Acap stock in one yoar is 4 (Round to the nearest cent) c. Given your answer in (b), what price would you be willing to pay for a share of Acap stock boday if you planned to hold the stock for one year? How does this cempare to your answer in (a)? Given your answer in (b), the price you would be willing to pay for a share of Acap stock today. If you planned to hold the stock for one year is 1 (Round to the nearest cent) When you compare your answer in (a) to the answer in (c). (Select the best chaice belew) A. The price in part (a) is lower than the price in part (c). B. The price in part (a) is the same as the price in part (c). c. The price in part (a) is higher than the price in part (c). D. Thev are not comoarable values

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