Stock ABC is expected to pay a dividend $1.50 per share in one year from today. You expect the stock to sell at $60 per share at the end of the year (i.e., in one year from today). The equity cost of capital is 15%.

a) What is the most you would pay for Stock ABC today?

b) What total return would you expect to earn (over the next one year) if you purchase Stock ABC (today) at the price you calculated in part a)?

Please show all work