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

The analysts believe that Infomat's 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 company's required rate of return is 12% per annum.

The intrinsic value of Infomat's stock is,

a.

$132.90

b.

$121.86

c.

None of theoptions.

d.

$112.54

e.

$160.02