You got a high-paying job as a security analyst for a hedge fund. Your employer wants your opinion about XWZ stock which currently sells for $92.50 per share and which recently paid a dividend of $3.94 per share. Over the last ten-years dividends per share have grown steadily at an annual rate of 5.11%. You believe that they continue to grow at the same rate for the indefinite future. If he requires a rate of return of 12.5%, you will tell him that, the stock is overpriced, and that he should not pay more than $69.76 the stock is overpriced, and that he should not pay more than $89.76 the stock is underpriced, and that it should be selling for $99.76 the stock is underpriced, and that it should be selling for $95.76 the stock is overpriced, and that he should not pay more than $56.04