WannaDance Corporation is considering issuing common shares. Their market price is currently $73.50, but the firm would like to verify the offering price. The following data is available: Beta 1.14 Risk-free rate 2.5% Stock index return 8.0% Growth rate 1.5% Current dividend CAD 5.00 REQUIRED: 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 worst-case analysis. The following data is available: Best Baseline Worst Supernormal growth 9.0% 8.0% 7.0% Growth period 5 years 3 years 2 years Normal growth 2.8% 2.5% 2.1% Would this affect the decision made in Part 1? Assume the results will follow a symmetrical distribution