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pleasw solve Suppose Acap Corporation will pay a dividend of $2.77 per...

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Finance

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Suppose Acap Corporation will pay a dividend of $2.77 per share at the ond of thil year and $2.99 per share noxt yeat. You expect Acap's theck price to be $51.45 in two years. Assume that Acaph equity cost of capital is 8.6%. a. What price would you be wiling to pay for a share of Acap stock today, if you planned to hold the stock for two years? b. Suppose insteed you plan to hold the stock for one yoar. For what price would you expect to be able bo sell a share of Acap stock in one yean? c. Given your answer in (b), What price would you be willing to pay for a thare of Acap stock today if you planned to hold tho atock for one yoanh How does this compare to your antwert in (a)? a. What price would you be wiling to pey for a share of Acap stock today, it you plarned to hold the stock for two years? If you plan to hold the stock for two years, the price you would pay lor a share of Acap stock today is 3 (Round to the nearest cent)

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