You own the stock $of$ Rorison and its current price $is$ $$\frac{36\mathrm{.}00}{s}$hare. $It$ pays $no$ dividend today. Rorison has just announced that $it$ intends $to$ initiate a dividend $of$ $$\frac{2\mathrm{.}50}{s}$hare $at$ the end $of$ Years $1,2,$ and $3(12,24,$ and $36$ months from now$).$ But $an$ improving future profit outlook leads you $to$ believe that Rorison$s$ Board will increase the Year $4$ dividend $by10\%to$ $$2\mathrm{.}75$; and then $to$ increase $it$ further $by4\%$ annually for the next $2$ years $(endof$ years $5$ and $6)$; after which $it$ will grow $by2\mathrm{.}0\%$ annually forever. You are seeking $a9\%$ annual return.

$In$ light $of$ this, should you buy more Rorison stock $at$ the current $$36$ price; $or$ should you sell all your current Rorison holdings for $$36$ per share and reinvest the proceeds elsewhere?

Group $of$ answer choices

Sell for $$36\mathrm{.}00$ because the intrinsic value $is$ $$34\mathrm{.}78$

Buy for $$36\mathrm{.}00$ because the intrinsic value $is$ $$37\mathrm{.}75$

Buy for $$36\mathrm{.}00$ because the intrinsic value $is$ $$38\mathrm{.}72$

Buy for $$36\mathrm{.}00$ because the intrinsic value $is$ $$38\mathrm{.}29$

Sell for $$36\mathrm{.}00$ because the intrinsic value $is$ $$35\mathrm{.}97$