Thank you!

The risk-free rate of return is 8.5%, the expected rate of return on the market portfolio is 15.5%, and the stock of Xyrong Corporation has a beta coefficient of 1.2. Xyrong pays out 40% of its earnings in dividends, and the latest earnings announced were $11.00 per share. Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of 20.5% per year on all reinvested earnings forever. Required: a. What is the intrinsic value of a share of Xyrong stock? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. If the market price of a share is currently $100, 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? Note: Do not round intermediate calculations. Round your answer to 2 decimal places