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Melissa Popp is thinking about buying some shares of R.H. Lawncare Equipment, at $51.75 per share. She expects the price of the stock to rise

Melissa Popp is thinking about buying some shares of R.H. Lawncare Equipment, at $51.75 per share. She expects the price of the stock to rise to $58.71 over the next 3 years. During that time she also expects to receive annual dividends of $5.49 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?

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