Melissa Cutt is thinking about buying some shares of EZLawn Equipment, at $33.74 per share. She expects the price of the stock to rise to $43.94 over the next 3 years. During that time she also expects to receive annual dividends of $5.11 per share.

a. What is the intrinsic worth of this stock, given a required rate of return of 12%?

b. What is its expected return?