The risk$-$free rate of return is $8\%,$ the expected rate of return on the market portfolio is $15\%,$ and the stock of Xyrong Corporation has a

beta coefficient of $1\mathrm{.}2.$ Xyrong pays out $40\%$ of its earnings in dividends, and the latest earnings announced were $$10$ per share.

Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of $20\%$ 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.

Intrinsic value

b$-1.$ 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, calculate the price of the share after one year from now.

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

Price

b$-2.$ What is your expected one$-$year holding$-$period return on Xyrong stock?

Note: Do not tound your intermediate calculations. Round your answer to $2$ decimal places.

Expected one$-$year holding$-$period return