The expected rate of return on the market portfolio is 18%, the risk-free rate is 6.00%, and the stock of SportX Corporation has a beta coefficient of 1.70. Last month SportX announced their latest earnings of $18 per share. The company pays out 50% of its earnings in dividends. The dividends were just paid (2 weeks ago) and are expected to be paid annually. You estimate that SportX will earn an ROE of 24% per year on all reinvested earnings forever.

a.	What is the intrinsic value of a share of SportX stock?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

Intrinsic value

$

b-1.	If 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.(Do not round intermediate calculations. Round your answer to 2 decimal places.)

Price

$

b-2.	If the market price of a share is currently $69, what is your expected one-year holding-period return on SportX stock?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

Expected one-year holding-period return

%