Suppose Maxwell Corporation will pay a dividend of $ 2.84 per share at the end of this year and $ 2.93 per share next year. You expect Maxwell's share price to be $ 53.82 in two years. Assume that Maxwell's equity cost of capital is 9.1 %. a.

a. What price would you be willing to pay for a Maxwell share today, if you planned to hold the share for two years?

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 one year?

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 one year? How does this compare to your answer in part a?