## Intrinsic Worth of the Stock Assignment

Melissa Popp is thinking about buying some shares of R.H. Lawncare Equipment, at $ 61.13 per share. She expects the price of the stock to rise to $ 66.76 over the next 3 years. During that time she also expects to receive annual dividends of 5.54 per share.

**a.** What is the intrinsic worth of this stock, given a required rate of return of 8%

**b.** What is its expected return?

**a.** The intrinsic worth of this stock is. _____ (Round to the nearest cent.)

**b.** The expected return is _____ %. (Round to one decimal place.)

(Cash flow/ Financial Calculator question)

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