Suppose Acap Corporation will pay a dividend of $$2\mathrm{.}88$ per share at the end of this year and $$2\mathrm{.}94$ per share next

year. You expect Acap's stock price to be $$53\mathrm{.}47$ in two years. Assume that Acap's equity cost of capital is $9\mathrm{.}5\%.$

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 instead 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$)?$