The stock is currently trading at $$8\mathrm{.}75$ and these are the financial information:

Current book value per share$=$ $$7\mathrm{.}25$

Expected earnings per share for the next $4$ years$=$ $$1\mathrm{.}16,$ $$1\mathrm{.}35,$ $$1\mathrm{.}56$ and $$1\mathrm{.}81$

Equity charge for the next $4$ years$=$$$0\mathrm{.}87,$ $$1\mathrm{.}01,$ $$1\mathrm{.}17,$ $$1\mathrm{.}36$

Dividend yield$=0\%$

Continuing residual income after year $4=0$

Required return$=12\%$

a$.$ Based on above information, what is the intrinsic value of the company using a residual income approach? Should one buy, sell or hold?

b$.$ If a persistent factor for residual income beyond year $4$ of $0\mathrm{.}3$ is used, what is the intrinsic value of the company based on residual income approach? What is the recommendation to buy, hold or sell?