$2$a$)$ A company's share is expected to pay a dividend of sh$.3$ per share next year. An investor wishes to buy the stock which is currently selling at sh$.55.$ If the required rate of return is $\backslash (11\backslash \%\backslash )$ and the dividends are expected to grow at a constant rate of $\backslash (6\backslash \%\backslash ),$ should the stock be purchased?

b$)$ A company has just paid a dividend of sh$.2$ per share to its shareholders. The company projects that the dividends will grow at a constant rate of $\backslash (7\backslash \%\backslash ).$ If the required rate of return is $\backslash (10\backslash \%\backslash )$ and the stock is currently being sold at sh$.25,$ is it overvalued or undervalued?