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We Bring the Rain Irrigation Company is currently growing much faster than the economy. Expected growth...

We Bring the Rain Irrigation Company is currently growing much faster than the economy. Expected growth of the company is 16% for the next 4 years; then it is expected to settle down to a constant 3% growth rate thereafter. The dividend last year was $3.20. Investors' required return on stocks of similar risk is 8%. If you already own 500 shares of We Bring the Rain, what should you do based on a comparison between your calculated intrinsic value of the stock and the current market value of the stock, which is $97.60.

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jeff jeffy answered 1 year ago
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