Solve the following:

(b) Sydney Bank has just paid an annual dividend of $0.40 per share. If its dividends are expected to grow indefinitely at a rate of 5% per year and the required rate of return is 12% per year, what is the intrinsic value of one Sydney Bank share? (Give your answer in dollars to two decimal places.)

(c) Given a risk-free rate of 4.25% and an expected market return of 12.00%, what is the required rate of return for an asset with a beta value of 1.2? (Give your answer in percentage points to two decimal places.) (2 marks)

(d) Sydney Bank has just paid an annual dividend of $0.40 per share. Today its shares are trading at a price of $10. What return would an investor expect to earn by investing in Sydney Bank shares if its dividends are forecast to grow indefinitely at an annual rate of 3%? (Give your answer in percentage points to two decimal places.)

(e) If you purchase a share for $5.00 and sell it after one month for $5.06, what is your holding period return expressed as an effective annual rate? (Ignore transaction costs. Give your answer in percentage points to two decimal places.)