Suppose Acap Corporation will pay a dividend of $1.80 per share at the end of this year and $2.00 per share next year. You expect Acap's stock price to be $32 in two years. Assume that Acap's equity cost of capital is 10%.

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?

For what price would you expect to be able to sell a share of Acap stock in one year? (1 point)