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You are analyzing the shares of Gotta Dance Corporation to determine whether your fund should add their shares to the portfolio. The following information is

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You are analyzing the shares of Gotta Dance Corporation to determine whether your fund should add their shares to the portfolio. The following information is the result of your analysis: Beta Risk-free rate Market risk premium Current dividend 1.36 1.8% 7.0% $ 7.00 You have modelled three potential scenarios for the short-term and long-term growth of Gotta Dance going forward: Supernormal growth Growth period Long-term growth Best 12.0% 5 years 2.5% Baseline 9.0% 3 years 2.0% Worst 4.0% 2 years 1.2% Assuming the best/baseline/worst case scenario probabilities to have a 20% / 60% / 20% distribution, what is your estimate for the share value

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