Melissa Popp is thinking about buying some shares of R.H. Lawncare Equipment, at $53.86 per share. She expects the price of the stock to rise to $66.72 over the next 3 years. During that time she also expects to receive annual dividends of $5.98 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 $______. (Round to the nearest cent.)

b. The expected return is _____%. (Round to one decimal place.)