James Doyle is contemplating investing in the stock of Pyramid Construction, which is currently trading for $62.25 per share. The company recently paid a dividend of $2.80 per share. Analysts forecast that the company's dividend will grow at a rate of 14% for the next 5 years, after which the dividend growth rate will stabilize at 6% into perpetuity. Given a required rate of return of 12%, the stock is currently most likely:

Select one:

a. Undervalued.

b. Overvalued.

c. Fairly valued.