You are considering buying common stock in GOW Inc. The firm yesterday paid a dividend of $3. You have projected that dividends will grow at a rate of 7% per year indefinitely. The firm's beta is 1.5, the risk-free rate is 4%, and the market return is 14%.

(1) What is the required return of the common stock?

(2) What is the intrinsic value of the common stock?

(3) If the market price of this stock is $36 per share, would you buy or sell the stocks? Why?