Suppose Acap Corporation will pay a dividend of $ $2\mathrm{.}75$ per share at the end of this year and $ $3\mathrm{.}01$ per share next year. You expect$$ Acap's stock price to be $ $50\mathrm{.}15$ in two years. Assume that$$ Acap's equity cost of capital is $8\mathrm{.}3\%.$

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$)?$

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Part $1$

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?

If you plan to hold the stock for two$$ years, the price you would pay for a share of Acap stock today is $$$

$$

enter your response here. $($Round to the nearest$$ cent.$)$

Part $2$

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?

The price for which you expect to sell a share of Acap stock in one year is $$$

$$

enter your response here. $($Round to the nearest$$ cent.$)$

Part $3$

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$)?$

Given your answer in $($b$),$ the price you would be willing to pay for a share of Acap stock$$ today, if you planned to hold the stock for one year is $$$

$$

enter your response here. $($Round to the nearest$$ cent.$)$

Part $4$

When you compare your answer in $($a$)$ to the answer in $($c$),($Select the best choice$$ below.$)$

A$.$

The price in part $($a$)$ is higher 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 lower than the price in part $($c$).$

D$.$

They are not comparable values.