Melissa Cutt is thinking about buying some shares of EZLawn Equipment, at $36.04 per share. She expects the price of the stock to rise to $42.83 over the next 3 years. During that time she also expects to receive annual dividends of $4.85 per share.

a. What is the intrinsic worth of this stock, given a required rate of return of 9% ?

b. What is its expected return?