Problem # 6 The risk-free rate of return is 10.5%, the expected and the stock of Xyrong Corporation has a beta coefficient of 1.5. Xyrong pays rate of return on the market portfolio is 17% out 50% of its and the latest earnings announced were $13 per share. Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of 24% per year on all reinvested earnings forever. a. What is the intrinsic value of a share of Xyrong stock? b-1. If the market price of a share is currently $87, 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. b-2. What is your expected one-year holding-period return on Xyrong stock