A company's $20 face value preference shares have a dividend rate of 7 percent and a required rate of return of 11 percent. If the market price per share for the preference share is $15, the preference share is appropriately described as being: a. overvalued by $15 b. overvalued by $2.27 c. overvalued by $12.73 d. undervalued by $12.73 e. undervalued by $7.27