Suppose Acap Corporation will pay a dividend of $2.80 per share at the end of this year and a dividend of $3 per share next year. You expect Acaps stock price to be $52 in two years. Assume that Acaps equity cost of capital is 10%.

HOW DO YOU USE ONLY CELL REFERENCE TO SOLVE THESE PROBLEMS ON EXCEL

Problem 7-10 Suppose Acap Corporation will pay a dividend of $2.80 per share at the end of this year and a dividend of S3 per share next year. You expect Acap's stock price to be $52 in two years. Assume that Acap's equity cost of capital is 10%. a. What price would you be willing to pay for a share of Acap stock today, if you planned to b. Suppose instead you plan to hold the stock for one year. For what price would you expect c. Given your answer to (b), what price would you be willing to pay for a share of Acap hold the stock for two years? to be able to sell a share of Acap stock in one year? stock today, if you planned to hold the stock for one year? How does this price compare to your answer in (a)? 2.80 3.00 Dividend in 1 year Dividend in 2 years Share price in 2 years Equity cost of capital S 10% 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? Holding period (years) Price per share 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? Holding period (years) Price per share c. Given your answer to (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 price compare to your answer in (a)? Price per share The price you would pay affected by the amount of time you hold the stock irements 1 In cell D1S, by using cell references, calculate the price that you would be willing to pay 2 In cell D24, by using cell references, calculate the price at which you would be able to sell 3 stock if you plan to hold it for two years (l p t.) the stock in one year (1 pt.). In cell D28, by using cell references, calculate the price that you would be willing to pay for the stock if you plan to hold it for one year. Note: Use cell D22 as the discount period (1 pt.). 4 In cell D29, type whether the price you would pay is or is not affected by the holding