Problem 18-13 The risk-free rate of return is 5.5%, the expected rate of return on the market portfolio is 17%, and the stock of Xyrong Corporation has a beta coefficient of 2.7. Xyrong pays out 25% of its earnings in dividends, and the latest earnings announced were $10.00 per share. Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of 18% per year on all reinvested earnings forever. a. What is the intrinsic value of a share of Xyrong stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Intrinsic value b. If the market price of a share is currently $8, and you expect the market price to be equal to the intrinsic value one year from now. what is your expected 1-year holding-period return on Xyrong stock? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Expected one-year holding period return %