$(5$ points$)$ Pepper is a young start$-$up company. No dividends will be paid on the stock over the next four years because the firm needs to plowback its earnings to future growth. The company will pay a $$1\mathrm{.}25$ per share dividend in $5$ years and will increase the dividend by $10$ percent per year for $5$ years, with the growth rate falling off to a constant $6$ percent thereafter. If the required retum is $12$ percent. The market price of Pepper is $$13$ per share currently.

a$.$ What is the current share price?

b$.$ Is the stock overpriced, underpriced, or fair priced? What is your investment strategy on Pepper's stock?