Melissa Cutt is thinking about buying some shares of EZLawn Equipment, at $34.88 per share. She expects the price of the stock to rise to $42.08 over the next 3 years. During that time she also expects to receive annual dividends of $3.38 per share. a. What is the intrinsic worth of this stock, given a required rate of return of 8%? b. What is its expected return? a. The intrinsic worth of this stock is $42.12. (Round to the nearest cent.) b. The expected return is 15.6 %. (Round to one decimal place.)

years. During that time sho also expects to recoive annual dividends of $3.38 per share. a. What is the intrinsic worth of this stock, given a required rate of retum of 8% ? b. What is its expected rebum? a. The intrinsic worth of this stock is $42.122. (Round to the nearest cent.) b. The expected return is 6. (Round to one decimal place.)