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The risk-free rate return is 8.5 percentage, the expected rate of return on the market portfolio is 15 percentage, and the stock of Xyrong corporation

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The risk-free rate return is 8.5 percentage, the expected rate of return on the market portfolio is 15 percentage, and the stock of Xyrong corporation has a beta coefficient of 2.9.Xyrong pays out 40 percentage of its earnings in dividends, and the lastest earning announced were $25 per share. Dividends were just paid and expected to be paid annually. You expect that Xyrong will earn an ROE of 22 percentage per year on all reinvested earnings forever. What is the intrinsic value of a share of Xyrong stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Intrinsic value $ If the market price of a share is currently $79, 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. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price $ What is your expected one-year holding-period return on Xyrong stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Expected one-year holding-period return percentage

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