The Beta of a stock a 1.25 with the current T-Bill at 2.45% and a market risk premium (from Ibbotson) is estimated at 5.01%. The stock had a current growth rate of 3.5% and estimated future dividend of $4.15 and currently sells for $62.23 a share. Based on this information, do you believe the stock is currently over or under valued and by what percent?

A. Overvalued by 1.46%

B. Overvalued by 4.52%

C. Undervalued by 4.52%

D. Undervalued by 1.46%