(a) Prudency Ltd. has just distributed its $0.50 annual dividend. Due to its leadership in the development of mobile applications for online shopping, the company is predicted to grow at a 20% annual rate for the next three years. The company is anticipated to continue growing after three years of rapid expansion at a constant rate of 6% annually. How much should the company be worth (per share) if the market's required rate of return is 13%?

(b) In a particular year, the FLORENCE Mutual Fund earned a return of 15% by making the following investments in the following asset classes:

	Weight	Return
Bonds	10%	6%
Stocks	90%	16%

The return on a bogey portfolio was 10%, calculated from the following information:

	Weight	Return
Bonds (Bloomberg Barclays Aggregate Bond Index)	50%	5%
Stocks (S&P 500 Index)	50%	15%

Compute the contribution of asset allocation across markets to the total abnormal return. After that, estimate the contribution of selection within markets to total abnormal return. What is total abnormal return?