Stock Zs beta coefficient is b _Z = 0.9. The risk-free rate is 6 percent, and the expected return on an average stock is 11 percent. The current price of Stock Z, P ₀, is $80; the next expected dividend, D ₁, is $2.80; and the stocks expected constant growth rate is 9.5 percent. Which of the following is correct?

	a.	Stock Z is overvalued. Its price will rise to restore equilibrium.
	b.	Stock Z is undervalued. Its price will fall to restore equilibrium.
	c.	Stock Z is undervalued. Its price will rise to restore equilibrium.
	d.	Stock Z is overvalued. Its price will fall to restore equilibrium.
	e.	Stock Z is fairly priced and in equilibrium.