You are analyzing the common stock of Biogen. Biogen has just paid a common dividend of $$100$ and proposes to increase the common dividend by $10\%$ p$.$a$.$ over the next three years after which the common dividend will decrease to $5\%$ p$.$a$.$ and stay at that level indefinitely. Suppose the appropriate discount rate to be applied to Biogen is $25\%$ p$.$a$.$ What is the intrinsic price of Biogen stock? If Biogen is currently priced in the market at $$600,$ do you want to buy Biogen? Sell Biogen?

Group of answer choices

Intrinsic Price is about $$699$; Sell

Intrinsic Price is about $$592$; Sell

Intrinsic Price is about about $$832$; Sell

Intrinsic Price is about $$5920$; Buy