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My answers are wrong plz help The risk - free rate of return is 9 . 0 % , the expected rate of return on
My answers are wrong plz help
The riskfree rate of return is the expected rate of return on the market portfolio is and the stock of Xyrong Corporation has
a beta coefficient of Xyrong pays out of its earnings in dividends, and the latest earnings announced were $ per share.
Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of per year on all
reinvested earnings forever.
Required:
a What is the intrinsic value of a share of Xyrong stock? Do not round intermediate calculations. Round your answer to decimal
places.
b If the market price of a share is currently $ and you expect the market price to be equal to the intrinsic value one year from
now, calculate the price of the share after one year from now. Do not round intermediate calculations. Round your answer to
decimal places.
Price
b What is your expected oneyear holdingperiod return on Xyrong stock? Do not round intermediate calculations. Round your
answer to decimal places.
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