Neville decides to buy 1 share of Firebolt stock and 1 share of Butterbeer stock in order to teach his friends about stock valuation and what he learned in MA 390.

Professor X gives him the following information:

• the price of 1 share of Firebolt stock is 50
• the expected dividend growth rate for both stocks is 10%
• the expected yield on both stocks is 15%
• the dividend on Butterbeer stock at time 1 is 120% of the dividend on Firebolt stock

Neville casts an imperius curse on you and tells you to answer the following questions:

a. the total cost of buying 1 share of each stock today

b. the total expected value of 1 share of each stock in 1 year