An analyst observes the benchmark Indian NIFTY 50 stock index trading at a forward price-to-earnings ratio of 15. The index’s expected dividend payout ratio in the next year is 50 percent, and the index’s required return is 7.50 percent. If the analyst believes that the NIFTY 50 index dividends will grow at a constant rate of 4.50 percent in the future, which of the following statements is correct?

A. The analyst should view the NIFTY 50 as overpriced.

B. The analyst should view the NIFTY 50 as underpriced.

C. The analyst should view the NIFTY 50 as fairly priced.