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1. Calculate the intrinsic value of WannaDance Company's shares. Should WannaDance issue new shares now? 2. How would the intrinsic value in Part 1 change

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1. Calculate the intrinsic value of WannaDance Company's shares. Should WannaDance issue new shares now? 2. How would the intrinsic value in Part 1 change if WannaDance Company's beta fell to 1.02 ? 3. Re-do Part 1 assuming the dividends were expected to grow at 8.0% for the first three years before falling to 5.0% ? 4. WannaDance is uncertain of some of its inputs and has decided to do a best- and worstcase analysis. The following data is available: Would this affect the decision made in Part 1 ? Assume the results will follow a symmetrical distribution. 1. Calculate the intrinsic value of WannaDance Company's shares. Should WannaDance issue new shares now? 2. How would the intrinsic value in Part 1 change if WannaDance Company's beta fell to 1.02 ? 3. Re-do Part 1 assuming the dividends were expected to grow at 8.0% for the first three years before falling to 5.0% ? 4. WannaDance is uncertain of some of its inputs and has decided to do a best- and worstcase analysis. The following data is available: Would this affect the decision made in Part 1 ? Assume the results will follow a symmetrical distribution

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