A particular company currently has sales of $250 million; sales are expected to grow by 20% next year (year 1). For the year after next (year 2), the growth rate in sales is expected to equal 10%. Over each of the next 2 years, the company is expected to have a net profit margin of 8% and a payout ratio of 50 %, and to maintain the common stock outstanding at 15.00 million shares. The stock always trades at a P/E of 15.0015.00 times earnings, and the investor has a required rate of return of 20 %. Given this information: a. Find the stock's intrinsic value (its justified price).

b. Use the IRR approach to determine the stock's expected return, given that it is currently trading at $15.00 per share.

c. Find the holding period returns for this stock for year 1 and for year 2.

a. The intrinsic value of the stock is $. (Round to the nearest cent.)

b. The expected return (IRR) on this investment is . (Round to one decimal place.)

c. The holding period return for year 1 is %. (Round to two decimal places.)

The holding period return for year 2 is %. (Round to two decimal places.)