Question1 25 points You own the stock of Pettersson and its current price is $38.50/share. It pays no dividend today. Based on your own research, you expect Pettersson to pay its first dividend of $2.70/share at the end of Years 1, 2, and 3 (12, 24, and 36 months from now). Given its performance outlook, you further expect the Board of Pettersson to increase the Year 4 dividend by 10% to $2.97; and then to increase it by 5% annually for the next 2 years (end of years 5 and 6); after which it will grow by 1.0% annually forever. You enjoy a number of investment alternatives that will, on average, provide you with a 9% annual return. In light of this, should you buy more Pettersson stock at the current $38.50 price; or should you sell all your current Pettersson holdings for $38.50 and reinvest the proceeds elsewhere? 0 A. Sell for $38.50 because the intrinsic value is $34.78 O B.Sell for $38.50 because the intrinsic value is $37.57 o c. sell for $38.50 because the intrinsic value is $37.88 O D. Buy for $38.50 because the intrinsic value is $38.79 O E.Buy for $38.50 because the intrinsic value is $39.42