Infomat Ltd reported an EPS of $24 for the just concluded financial year and paid a dividend per share of $9.60. The companys return on equity (ROE) is 15% per annum.

The analysts believe that Infomats current growth rate will last for another three years. However, the growth rate will drop to the industry average of 5% in year four and will remain at that level forever. The companys required rate of return is 12% per annum.

The intrinsic value of Infomats stock is,

a.

$112.54

b.

None of the options.

c.

$160.02

d.

$121.86

e.

$132.90