Suppose the risk-free rate of return is 2.5 percent and the market risk premium is 8 percent. Stock U, which has a beta coefficient equal to 0.7, is currently selling for $40 per share. The company is expected to grow at a 4 percent rate forever, and the most recent dividend paid to stockholders was $1.25 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-