Consider a stock currently valued at $$12\mathrm{.}75$ and paying a $$1\mathrm{.}25$ dividend where the required rate of return

is $8$ percent. Assuming no growth rate of dividends, determine the stock's current value and indicate

whether it is over$-$ or undervalued.

a$.$ $$15\mathrm{.}63,$ undervalued

b$.$ $$15\mathrm{.}63,$ overvalued

c$.$ $$1\mathrm{.}56,$ undervalued

d$.$ $$1\mathrm{.}56,$ overvalued