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Melissa Popp is thinking about buying some shares of R.H. LawncareEquipment, at $48.25 per share. She expects the price of the stock to rise to

Melissa Popp is thinking about buying some shares of R.H. LawncareEquipment, at $48.25 per share. She expects the price of the stock to rise to $61.55 over the next 3 years. During that time she also expects to receive annual dividends of $4.34 per share.

a.What is the intrinsic worth of thisstock, given a 12% required rate ofreturn?

b.What is its expectedreturn?

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