Infomat Ltd reported an EPS of $24 for the just concluded f

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. $160.02

b. $121.86

c. $132.90

d. None of the options.

e. $112.54

inancial 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. $160.02 b. $121.86 c. $132.90 d. None of the options. e. $112.54