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B & L Industries is currently trading for $49.27 a share. Next year's dividend is expected to be $4.83 and grow at a sustainable growth

B & L Industries is currently trading for $49.27 a share. Next year's dividend is expected to be $4.83 and grow at a sustainable growth rate of 1.0%. You have just heard that B & L plans to maintain its plowback ratio at 43.0% and its current earnings per share is $8.47 If you require 11.0% on an investment of similar risk, what is the stock's intrinsic value today and should you invest? A) $36.52 do not buy the stock B) $48.30 do not buy the stock C) $42.00 do not buy the stock D) $42.00 buy the stock E)$36.52 buy the stock

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