A company's per-share dividends on common stock are expected to grow at a constant rate of 5.00% for the foreseeable future. The company has just paid out a per-share dividend of $2.90. Investors require a return of 12% on this stock. Each share of this stock is currently selling for $45. Based on this information, we can say that this stock is:

a. Overpriced because the fair price for this stock is $43.50.

b. Priced correctly because the current price implies a return of 12% for the investors.

c. Underpriced because the expected rate of return on the stock is 11.39%.

d. Overpriced because the expected rate of return on the stock is 13.21%

e. Underpriced because the fair price for this stock is $51.82 (This choice is wrong)