Sheng, Inc.expect to have22% of return on equity each year.The company's dividend payout ratio is60%, and it just announced its EPS of$25.Sheng just paid its dividends this year.If Sheng has a beta of 2.6 andthe T-bill'sreturn is 10.0%, with investors expect S&P500 to earn a return of20%.

a.Calculate the intrinsic value of Sheng's common shares.(Do not round intermediate calculations. Round your answer to 2 decimal places.)

b-1.What will be the price per share one year from now if Sheng's currentmarket price pershare is $59, and people expect that the current market price reflects its intrinsic value?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

b-2.What will be yourholding-period return if you hold Sheng's common stock for one year?(Do not round intermediate calculations. Round your answer to 2 decimal places.)