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?

1. How would the intrinsic value in Part 1 change if WannaDance Company's beta fell to 1.02?

1. Re-do Part 1 assuming the dividends were expected to grow at 8.0% for the first three years before falling to 5.0%?

1. 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%
Probability (symmetrical)	33.33%	33.33%	33.33%
Share value (scenario)	$112.17	$94.80	$83.82
Value of the share	$96.93 (weighted avg)

Would this affect the decision made in Part 1? Assume the results will follow a symmetrical distribution.

I need to understand very simple the calculations, please. Step-by-step calculations are to be done with very simple explanations