Questions (14-16) are based on the information that follows. Initex Corporation's stock trades at $138.70.8 -1.10. RM 15%, Ref 5% and it pays the following dividends. Do $4.24: D = $4.80; D2 -$6.40: DJ -$8.30. After that dividends grow at the constant rate of 13% forever, 14. What should be the fair value (intrinsic price) of the stock? La) $214.50 (b) $136.87 (c) 5129.83 (d) $183.10 (e) $244.52 Questions (14-16) are based on the information that follows. Intex Corporation's stock trades at $138.70.3 - 1.10, RM =15%. Rgs -5% and it pays the following dividends. Do =$4.24: D -$4.80; D2 $6,40, D, -$8.30. After that dividends grow at the constant rate of 13% forever 15. You believe strongly in your valuation model. The best course of action if you already own the stock is to? (a) Sell it as soon as possible. It is 5.0% overvalued and it is due for a price correction downwards. (b) Sell it. You have bought a stock that is 25% overvalued and it is due to decrease in price shortly. (c) Do nothing as the stock is fairly priced and plots along the SML. (d) Sell it as soon as possible. It is 8.0% overvalued and it is due for a price correction downwards. (e) Hold on to it. You have bought a stock that is 35.4% undervalued and it is due to increase in price shortly. a Ob Od e Questions (14-16) are based on the information that follows. Initex Corporation's stock trades at $138.7.1 - 1.10, RM -15% Ruf - 5% and it pays the following dividends. Do $4.24: D, -54.80 D2 -$6.40, D. $8.30. After that dividends grow at the constant rate of 13% 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) 6.63% (b) 11.55% (c) 9.39% (d) 9.56% le) 8.715