The UJK Company has just paid a dividend of $5. The dividends are expected to grow at a rate of 20% for the next three years. After the third year, dividends are expected to decline at a rate of 3% per year forever. The required rate of return for UJK is 12%. The current market price of UJK is $61. Which one of the following statement is correct? a. UJK is overpriced because its fair price is $57.02 O b. OC. UJK is underpriced because its fair price is $66.45 UJK is overpriced because its fair price is $73.12 UJK is overpriced because its fair price is $61/17 UJK is underpriced because its fair price is $59.33 Od. O e. Mark Which of the following statements is not true about the weighted average cost of capital (WACC) method? Oa. If WACC is greater than the IRR of a project and the cash flows are conventional, then, the NPV of the project will always be less than zero O b. If WACC is less than IRR of a strip mine project, then, the NPV of the project will always be greater than zero O c. WACC adjusts for the tax deductibility of interest costs O d. Average company WACC should not be used for evaluating projects in a multi-segment conglomerate . WACC cannot be used to evaluate projects in which the capital structure is significantly different from the firm's overall structure