Jet, Inc. just paid a dividend $2.00 per share. The firms stock is selling today in the market for $70 per share. The dividend is expected to grow at the rate of 7% per year for the foreseeable future. If you require a return of 10% on this stock should you purchase it?

No, because the stock is overpriced $3.33.

Yes, because the stock is underpriced $3.33.

No, because the stock is overpriced $1.33.

Yes, because the stock is underpriced $1.33.

Yes, because the stock is overpriced $3.33.