Question: please use equation to solve these problems suppose Acap corporation will pay a dividend of 2.80$ per share ag the end of this year and

please use equation to solve these problems

suppose Acap corporation will pay a dividend of 2.80$ per share ag the end of this year and 3.00$ per share nexr year. you expet acaps stock price to be 52.00$ in two years. assumr yhay acaps equitity cost of capital is 10%

a) what price would you be willing to pay flr a share of acap stocl today if you planned to hold the stock for two years?

b) suppose instead you plan to hold the stock for one gewr. for what prive would you expect to be able to sell a share of acap stock in one year?

c) given your anawer in (b) what price would you be willing to pay for a shqre of acap syocl today if you planned to hold the stock for one year? how does this compare to your anawer in a

Copy GOON What priced you be hund you to What price would you be willing you to hold the fore you the price you for share ook de b. Suponad you plan to hold the stock for one or what you to be The ice for which spect to all who of A och inre you to the eart) c. Given your answer in (b). what price would you be to pay for share of op so today you do Given your answer in (b), the price you would be wing to pay for a share of op wook today, you planned to the When you compare your anmerin in to the answer in te let the best choreo) O A The price in part(a) is higher than the price in part() OB. The price in port(a) is the same as the price in port (c) OC. The price in part (a) is lower than the price in port () D. They are not comparable values

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