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Questions (14-16) are based on the information that follows. Initex Corporation's stock trades at $138.64. BI = 1.10, RM -15%, RRE = 5% and it

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Questions (14-16) are based on the information that follows. Initex Corporation's stock trades at $138.64. BI = 1.10, RM -15%, RRE = 5% and it pays the following dividends. Do $4.24; D4 = $4.80; D2 =$6,40; D3 =$8.30. After that dividends grow at the constant rate of 12% forever. 16. You believe strongly in your valuation model. What percentage of the true (intrinsic) stock price is attributable to the irregular cash flow component? (a) 10.78% (b) 11.55% (c) 9.39% (d) 6.56% (e) 8.71%

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