Stellar Baking Company in Australia has a trailing P/E of 14. Analysts predict that Stellar’s dividends will continue to grow at its recent rate of 4.5 percent per year into the indefinite future. Given a current dividend and EPS of A $ 0.7 per share and A $ 2.00 per share, respectively, and a required rate of return on equity of 8 percent, determine whether Stellar Baking Company is undervalued, fairly valued, or overvalued. Justify your answer.