VMX stock is currently trading at $25.80. Its most recent reported earnings per share was $1.20. Based on guidance provided by management at the recent investors conference, earnings are expected to grow at 20% per year for the next 3 years, and 3% thereafter. The estimated dividend pay-out ratio is 50% for the next 3 years and 75% thereafter. Verify whether VMX stock is correctly priced by the market.

Required rate is 10.8%