1- The risk-free rate of return is 8.5%, the expected rate of return on the market portfolio is 15%, and the stock of Xyrong Corporation has a beta coefficient of 2.9. Xyrong pays out 40% of its earnings in dividends, and the latest earnings announced were $25 per share. Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of 22% per year on all reinvested earnings forever. (( lo0king for answer last part B-2 )

a. What is the intrinsic value of a share of Xyrong stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Intrinsic value 80 $

b-1. If the market price of a share is currently $79, and you expect the market price to be equal to the intrinsic value one year from now, calculate the price of the share after one year from now. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Price 90.53 $

b-2. What is your expected one-year holding-period return on Xyrong stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Expected one-year holding-period return ?? %

( the answer is not 13.16 and not 26.65)

2-Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 20% for two years and then at 7% thereafter. If the required return for Deployment Specialists is 9.5%, what is the intrinsic value of Deployment Specialists stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)