ABC Manufacturing pays dividends annually. Dividends have been growing 4% a year. Today is May 1, 2019. Its next dividend, to be paid 1 year from today, will be $1.20 per share. The company is involved in a research and development (R&D) program to develop a new widget. The results are expected in 1 year. The discount rate is 10%. a. Scenario 1. It is May 1, 2020, and the company announces the new widget is a great success. ABC pays its previously announced $1.20 dividend and announces the 2021 dividend will be $2.50 per share. What will be the stock price on May 1, 2020, if dividends beyond 2021 are expected to grow at 6% in perpetuity? (Do not round intermediate calculations. Round your answer to the nearest cent.) Stock price $ b. Scenario 2. It is May 1, 2020, and the company announces that the widget program has been ended and that the next annual dividend will be $1.248, 4% larger than the dividend it just paid. What is the stock price May 1, 2020? (Round your answer to the nearest cent.) Stock price $ c. If the probability of success of the R&D (scenario 1) is 30%, what price would you expect the stock to be today? (Do not round intermediate calculations. Round your answer to 2 decimal place.) Stock price $ d-1. Suppose you bought the stock for the price you calculated in part (c) and the research and development program is successful. What will be the 1-year rate of return on your investment? (Do not round intermediate calculations. Round your answer to 2 decimal place. Use the minus sign to enter negative numbers.)