An analyst collected the following information about a company:

The stock is currently trading at $31.00 per share.

The estimated growth rate for the next three years is 25%.

Starting in year 4, the growth rate is expected to decrease and stabilize at 8%.

The profitability required for this type of company is estimated at 15%.

The dividend in year 1 is estimated to be $2.00.

The stock is undervalued by approximately:

A.$15,70.

B.$0.00.

C.$6,40.