Company K is trading at a price of $56 per share. The company is expected to pay a dividend of $3 per share next year. You expect the price in one year will be $62 per share. The company's beta is 1.4. The risk-free rate is 3% and the expected return on the market is 10%. Based on the CAPM, are the shares of Company K undervalued, fairly valued, or overvalued? What is the stock's alpha? Show your work (and be sure to answer the two questions).