Suppose the risk$-$free rate of return is $3\mathrm{.}5$ percent and the market risk premium is $9$ percent. Stock U$,$ which has a beta coefficient equal to $0\mathrm{.}9,$ is currently selling for $$39$ per share. The company is expected to grow at a $4$ percent rate forever, and the most recent dividend paid to stockholders was $$3\mathrm{.}50$ per share. Is Stock U correctly priced? Explain. Do not round intermediate calculations. Round your answers to one decimal place.

The required rate of return, that is

$\%?,$ is

$-$Select$-($greater than, lower than, equal to$)$

the expected rate of return, that is

$\%?,$ which means that

$-$Select$-($the selling price is too high, the selling price is too low, the stock is priced correctly$)$

$.$