Your broker recommends you purchase XYZ Inc. at $60, the current market price. The stock just paid a $2.30 dividend which is expected to grow annually at 8 percent. If the required return is 12 percent, how much could the market price rise before the stock is no longer undervalued?

Group of answer choices

$2.09

$3.68

$4.79

$5.00

$0.00, it is fairly priced