KTPs most recent dividend was $1.24 per share, and the stock is selling today in the market for $67. The dividend is expected to grow at a rate of 5% per year for the foreseeable future. If the return is 7% on investments with comparable risk, should you purchase the stock?

• No, because the stock is overpriced $5.00.

• Yes, because the stock is underpriced $5.00.

• No, because the stock is overpriced $1.90.

Yes, because the stock is underpriced $1.90.