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Questions (A14-A16) are based on the information that follows. Initex Corporation's stock trades at $156.08.B = 1.10, RM=15%, RRF = 5% and it pays the

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Questions (A14-A16) are based on the information that follows. Initex Corporation's stock trades at $156.08.B = 1.10, RM=15%, RRF = 5% and it pays the following dividends. Do =$4.24; D1 = $4.80; D2 = $6.40; D3 =$7.30. After that dividends grow at the constant rate of 12% forever. A16. You believe strongly in your valuation model. What percentage of the true (intrinsic) stock price is attributable to the irregular cash flow component? (a) 15.78% (b) 11.55% (c) 9.39% (d) 8.56% (e) 12.54%

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