B&L Industries is currently trading for $$35\mathrm{.}19$ a share. Next year's dividend is expected to be $$1\mathrm{.}66$ and grow at a sustainable growth rate of $3\mathrm{.}0\%.$ You have just heard that B&L plans to maintain its plowback ratio at $49\mathrm{.}0\%$ and its current earnings per share is $$3\mathrm{.}25$ If you require $8\mathrm{.}0\%$ on an investment of similar risk, what is the stock's intrinsic value today and should you invest?

$$33\mathrm{.}20,$ do not buy the stock

$$33\mathrm{.}20,$ buy the stock

$$38\mathrm{.}18,$ buy the stock

$$28\mathrm{.}87,$ buy the stock

$$28\mathrm{.}87,$ do not buy the stock