Suppose Acap Corporation will pay a dividend of $ 2.73 per share at the end of thisyear, and $ 2.96 per share next year. You expectAcap's stock price to be $ 52.56 in two years. IfAcap's equity cost of capital is 9.8 %:

a. What price would you be willing to pay for a share of Acap stocktoday, if you planned to hold the stock for twoyears?

b. Suppose instead you plan to hold the stock for one year. What price would you expect to be able to sell a share of Acap stock for in oneyear?

c. Given your answer in part (b), what price would you be willing to pay for a share of Acap stocktoday, if you planned to hold the stock for oneyear? How does this compare to your answer in part (a)?