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Question 1 25 pts You own the stock of Rorison and its current price is $36.00/share. It pays no dividend today. Rorison has just announced that it intends to initiate a dividend of $2.50/share at the end of Years 1, 2, and 3 {12, 24, and 36 months from now]. But an improving future prot outlook leads you to believe that Rorison's Board will increase the Year 4 dividend by 10% to $2.75; and then to increase it further by 4% annually for the next 2 years {end of years 5 and 6}; after which it will grow by 2.0% annually forever. You are seeking a 9% annual return. in light of this, should you buy more Rorisoh stock at the current $36 price; or should you sell' all your current Rorisoh holdings for $36 per share and reinvest the proceeds elsewhere? ('3. Sell for $36.00 because the intrinsic value is $34.73 (3 Buy for $36.00 because the intrinsic value is $38.?2 C- Sell for $36.00 because the intrinsic value is $35.97 ('3- Buy for $36.00 because the intrinsic value is $3?.?5 (3. Buy for $36.00 because the intrinsic value is $38.29