3.An investor expects a share of HappyGoto pay dividends of $2 at the end of each year from year 1 to year 4. After that, dividends are expected to be $2.5 per year indefinitely. The required rate of return on the shares is 10%. If the investors forecasts are accurate and the market price of the shares is currently $40, the most likely conclusion is that the shares of HappyGo are:

A. overvalued. B. undervalued. C. fairly valued