According to the discounted dividend valuation model af stock valuation, which of the following statements is true, assuming that Lucas's client has a required rate of return of $16$ percent and that the dividend has grown from $16$ cents to $24$ cents in three years?

The current Stuff Stores stock price exceeds the calculated velue.

The current Stuff Stores stock price is less than the calculated value.

III. Using the discounted dividend valuation model as the only measure, the Stuff Stores stock is undervalued.

IV$.$ The market price and the calculated value for Stuff Stores match closely, as expected given the high degree of efficiency in the markets.

a$.$ I only

b$.$ III only

c$.$ II and III only

d$.$ III and IV only

Lucas Little, a financial planning professional, has been asked by his client to review the financial statements of Stuff Stores Company. Lucas's client is considering making a substantial purchase of Stuff Stores stock. Before doing so$,$ the client would like to know a bit more about the financial stability of the company. The information in Table $14\mathrm{.}4$ should be used to conduct a fundamental analysis of Stuff Stores' financial situation.

$\backslash$table$[[$Financial Atrribute,Year $1,$Year $2,$Current$],[$Market capitalization,$200005,2122340,249,265],[$Total sales,$1342050,1cossin,193245],[$Net income $($earnings$),$ht$3000,5370,6x-2$