Suppose Acap Corporation will pay a dividend of $2.73 per share at the end of this year, and $3.02 per share next year. You expect Acap's stock price to be $50.63 in two years. If Acap's equity cost of capital is 9.8%: 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? 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? 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? How does this compare to your answer in part (a)? Note: It is best not to round intermediate calculations - make sure to carry at least four decimal places in intermediate calculations. 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? The price you would be willing to pay, if you planned to hold the stock for two years, is $ (Round to the nearest cent.) 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? You would expect in one year to be able to sell an Acap share at $ (Round to the nearest cent.) 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? The price you would pay for an Acap share today is $. (Round to the nearest cent.) How does this compare to your answer in part (a)? OA. You would pay less for a stock today if you only plan to hold it for one year. OB. The price you are willing to pay for the stock today is the same whether you plan to hold the stock for one year or two years. OC. You would be willing to pay more for a stock today if you planned to hold it for two years rather than one year. O D. You would pay less for a stock today if you plan to hold it for two years instead of one year.

If Roberta's husband were to die, she and her children could live on $52,500 per year. Roberta earns $13,900 annually and estimates additional income of $3,500 from other sources. How much insurance should she purchase on her husband to cover the shortfall, assuming a 4.9% prevailing interest rate? Round to the nearest $1,000.

A new investment opportunity for you is an annuity that pays $850 at the beginning of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?

James has an investment worth $175,609.50. The investment will make a special payment of X to James in 1 month from today and the investment also will make regular, fixed monthly payments of $1,440.00 to James forever. The expected return for the investment is 1.23 percent per month and the first regular, fixed monthly payment of $1,440.00 will be made to James in one month from today. What is X, the amount of the special payment that will be made to James in 1 month? An amount less than $58,600.00 or an anmount greater than $179,600.00 An amount equal to or greater than $58,600.00 but less than $88,950.00 An amount equal to or greater than $88,950.00 but less than $146,400.00 An amount equal to or greater than $146,400.00 but less than $176,000.00 O An amount equal to or greater than $176,000.00 but less than $179,600.00 Com SHEMA