Fargo's stock is selling for $$15$ per share. Fargo just declared dividend of $$2\mathrm{.}00$ This dividend is expected to grow at an annual $15$ percent rate for next three years $($years $1$ to $3)$ and then from year $4$ onwards dividends are expected to grow at the firm's normal growth rate of $6\mathrm{.}6$ percent for the forseeable future. The firm's required rate of return is $18$ percent. The stock is$...($Mark your closest answer$)$

Correctly Valued

Undervalued by $$8\mathrm{.}01$

Overvalued by $$8\mathrm{.}01$

Undervalued by $$2\mathrm{.}05$