Question: Johnson common stock is expected to pay a $ 3 . 7 5 dividend next year, which is predicted to grow by 8 percent forever.

Johnsoncommon stockis expected to pay a$3.75 dividend next year, which is predicted togrow by8 percent forever.If Johnson's common stockcurrently sells for $51.72, and your required rate of return is15 percent, should you purchase the stock? Group of answer choices No, the percentage return on the stock is too high, thus it is too risky. Yes, the stock is underpriced. No, the stock is overpriced. Cannot be determined.

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