Suppose the risk$-$free rate of return is $4\mathrm{.}5$ percent and the market risk premium is $7$ percent. Stock U$,$ which has a beta coefficient equal to $1\mathrm{.}2,$ is currently selling for $$35$ per share. The company is expected to grow at a $4$ percent rate forever, and the most recent dividend paid to stockholders was $$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$-$

the expected rate of return, that is

$\%,$ which means that

$-$Select$-$

$.$