M&M Co. is expected to have earnings of $6 per share next year and is expected to grow at a constant rate. The ROE is 18% and the firm retains 70% of its earnings. The required rate of return on the stock is 14%. The market price of M&M stock is currently $100. Answer the next question based on this information. The intrinsic value of the stock is ______; thus, the market currently ________ $128.57; undervalues it $304.69; overvalues it. $77.35; undervalues it None of the above