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 $$11\mathrm{.}00$ 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.

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.

a$.$ Intrinsic value

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