Beta and Value A firm is expected to pay an annual dividend of $.60 next year. After next year the firm's dividends will grow at a steady state rate of 3% per year. You are trying to value the stock and Value Line lists a stock beta of 1.51 while Yahoo is reporting a beta of 1.44. The stock is currently priced at $13.30. If E(RM) - Rf = 4.8% and the risk free rate is 2.8% the stock is _ if you use the Value Line beta and is if you use the Yahoo beta. Multiple Choice O underpriced by $1.33; underpriced by $1.63 O overpriced by $4.36; overpriced by $4.79 O underpriced by $1.63; underpriced by $1.33 O overpriced by $4.79; overpriced by $4.36