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Ch. 13 instructions help Question 5 (of 6) Save &Exit |. Submit 10.00 points The risk-free rate of return is 8.0% he expected rate of
Ch. 13 instructions help Question 5 (of 6) Save &Exit |. Submit 10.00 points The risk-free rate of return is 8.0% he expected rate of return on ne market portfolio s 18%, and tne stock of Xyrong Corporation has a beta coeficient of 2.4 X rong pays out 50% of its earnings in drndends, and the latest earnings announced were 520 per share. Dividends were just paid and areexpecte tn he paid annually. Yo expect that Xyrong will rarn an ROFf20 per year on all reinvested earnings forevtr 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 b-1. If the market price of a share ia currently S49, 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 b-2. What is your expected one-year holding-period return on Xyrong atock? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Expected one-year holding-period return eBook & Resources Worksheet Leaming Objective: 13-02 Calculate the intrinsic value of a firm using either a constant-growth or multistage dividend discount model
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