A company has a beta of 1.20, an expected annual dividend of $0.72 next year, and a 5.5% growth rate. Find its intrinsic value. If it's currently trading around $20, is it over or under valued? (Round to three decimal places.)

Group of answer choices

1. IV is between $9.50 and $10.50, and the stock is over valued

2. None of the choices is correct

3. IV is between $8.00 and $8.50, and the stock is under valued

4. IV is between $8.00 and $8.50, and the stock is over valued