Question: . An analyst gathers or estimates the following information about a stock: Current price per share 22.56 Current annual dividend per share 1.60 Annual dividend

. An analyst gathers or estimates the following information about a stock:

Current price per share €22.56 Current annual dividend per share €1.60 Annual dividend growth rate for Years 1–4 9.00%

Annual dividend growth rate for Years 5+ 4.00%

Required rate of return 12%

Based on a dividend discount model, the stock is most likely:

A. undervalued.

B. fairly valued.

C. overvalued.

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