Question 10 You are given the following information on a security: Market price = $36 Annual Dividend = $4 (Assume the dividend is constant and is paid forever) Discount rate = 10% What is the security's intrinsic value, and how does this intrinsic value compare to its market price? $36. The security is fairly valued. A $40. The security is undervalued. B $40. The security is overvalued C $44. The security is undervalued. $44. The security is overvalued. E