The risk-free rate of return is 7.5%, the expected rate of return on the market portfolio is 14%, and the stock of ABC Corporation has a beta coefficient of 1.3. ABC pays out 45% of its earnings in dividends, and the latest earnings announced were $12 per share. Dividends were just paid and are expected to be paid annually. You expect that ABC will earn an ROE of 18% per year on all reinvested earnings forever.

Please enter your answers with TWO decimal points.

1. The intrinsic value of a share of ABC stock $ .
2. If the market price of a share is currently $103, and you expect the market price to be equal to the intrinsic value one year from now, then your expected one-year holding-period return on ABC stock is %.