Suppose Maxwell Corporation will pay a dividend of $ 2.81per share at the end of this year and $ 3.01 per share next year. You expectMaxwell's share price to be $ 53.76 in two years. Assume thatMaxwell's equity cost of capital is 8.5 %

a. What price would you be willing to pay for a Maxwell sharetoday, if you planned to hold the share for twoyears?

b. Suppose instead you plan to hold the share for one year. For what price would you expect to be able to sell a Maxwell share in oneyear?

c. Given your answer in part b, what price would you be willing to pay for z Maxwell share today if you planned to hold the sharefor oneyear? How does this compare to your answer in part a?

a.If you planned to hold the share for twoyears, the price you would pay for a Maxwell share today is $

nothing

. (Round to the nearestcent.)

b. The price would you expect to be able to sell a Maxwell share for in one year is $

nothing

. (Round to the nearestcent.)

c. Given your answer in part b, the price you would be willing to pay for a Maxwell sharetoday, if you planned to hold the share for one year is $

nothing

. (Round to the nearestcent.)

When you compare your answer in part a to the answer in part c, (Select the best choicebelow.)

A.

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

D.

They are not comparable values.