The risk$-$free rate of return is $6\%,$ the expected rate of return on the market portfolio is $15\%,$ and the stock of Xyrong Corporation has a

beta coefficient of $2\mathrm{.}3.$ Xyrong pays out $45\%$ of its earnings in dividends, and the latest earnings announced were $$9\mathrm{.}00$ per share.

Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of $18\%$ per year on all

reinvested earnings forever.

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

places.$)$

Answer is complete and correct.

b$.$ If the market price of a share is currently $$22,$ 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? $($Do not round intermediate calculations. Round your answer to

$2$ decimal places.$)$

Answer is not complete.