Question 11 (2.5 points) Violet's stock is currently selling at $20 per share. Current earnings per share, EO, were $4.00, and the dividend payout ratio is 40 percent. The firm has been experiencing a 6 percent annual growth rate and this growth rate is expected to be in the forseeable future. The risk-free rate is 5 percent, and the market return is 11%. If the beta of the company is 1.50, and all other factors remain constant, by how much will the stock be undervalued or overvalued? overvalued by $2.15 undervalued by $1.20 overvalued by $1.20 undervalued by $2.15