Can you provide me with the answer to this question please?

D. HUIVI L UU Question 20 A company's $100 par perpetual preferred stock has a dividend rate of 7 percent and a required rate of return of 11 percent. Suppose the company is expected to distribute common dividend every year and has a track record of maintaining the dividend payout ratio around 60%. Moreover, its earnings are expected to grow at a constant rate of 3 percent per year. If the market price per share for the preferred stock is $75, which of the following most appropriately describe the preferred stock? A. Overvalued B. Fairly valued C. Undervalued D. Cannot determine if it is misvalued or not