The risk-free rate of return is 9.0%, the expected rate of return on the market portfolio...

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The risk-free rate of return is 9.0%, the expected rate ofreturn on the market portfolio is 14%, and the stock of XyrongCorporation has a beta coefficient of 2.0. Xyrong pays out 50% ofits earnings in dividends, and the latest earnings announced were$20 per share. Dividends were just paid and are expected to be paidannually. You expect that Xyrong will earn an ROE of 18% per yearon all reinvested earnings forever.
a. What is the intrinsic value of a share ofXyrong stock? (Do not round intermediate calculations.Round your answer to 2 decimal places.)
Intrinsic value           $
b-1. If the market price of a share iscurrently $108, and you expect the market price to be equal to theintrinsic value one year from now, calculate the price of the shareafter one year from now. (Do not round intermediatecalculations. Round your answer to 2 decimal places.)
Price           $
b-2. What is your expected one-yearholding-period return on Xyrong stock? (Do not roundintermediate calculations. Round your answer to 2 decimalplaces.)
Expected one-year holding-period return            %

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The risk-free rate of return is 9.0%, the expected rate ofreturn on the market portfolio is 14%, and the stock of XyrongCorporation has a beta coefficient of 2.0. Xyrong pays out 50% ofits earnings in dividends, and the latest earnings announced were$20 per share. Dividends were just paid and are expected to be paidannually. You expect that Xyrong will earn an ROE of 18% per yearon all reinvested earnings forever.a. What is the intrinsic value of a share ofXyrong stock? (Do not round intermediate calculations.Round your answer to 2 decimal places.)Intrinsic value $b-1. If the market price of a share iscurrently $108, and you expect the market price to be equal to theintrinsic value one year from now, calculate the price of the shareafter one year from now. (Do not round intermediatecalculations. Round your answer to 2 decimal places.)Price $b-2. What is your expected one-yearholding-period return on Xyrong stock? (Do not roundintermediate calculations. Round your answer to 2 decimalplaces.)Expected one-year holding-period return %