What price would be willing to pay for share of acap stock?

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Suppose Acap Corporation will pay a dividend of $2.73 per share at the end of this? year, and $2.91 per share next year. You expect? Acap's stock price to be $50.27 in two years. If? Acap's equity cost of capital is 10.1%?:

Question 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?

Question 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 one? year?

Question c. Given your answer in part ?(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?

Reference no: EM132533113

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