Marcy may add 100 shares of LKM corporation stock to her investment portfolio. The stock recently...

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Marcy may add 100 shares of LKM corporation stock to her investment portfolio. The stock recently paid a dividend of $1.85 per share. The dividend is expected to grow at a constant rate of 2.25% per year. Her required rate of return is 7%. The stock is currently trading for $35.75 per share. Determine whether she should purchase the stock and why. A) Yes, the stock is undervalued based on an intrinsic value of $33.46. B) No, the stock is overvalued based on an intrinsic value of $38.95. C) No, the stock is overvalued based on an intrinsic value of $32.87. D) Yes, the stock is undervalued based on an intrinsic value of $39.82. Marcy may add 100 shares of LKM corporation stock to her investment portfolio. The stock recently paid a dividend of $1.85 per share. The dividend is expected to grow at a constant rate of 2.25% per year. Her required rate of return is 7%. The stock is currently trading for $35.75 per share. Determine whether she should purchase the stock and why. A) Yes, the stock is undervalued based on an intrinsic value of $33.46. B) No, the stock is overvalued based on an intrinsic value of $38.95. C) No, the stock is overvalued based on an intrinsic value of $32.87. D) Yes, the stock is undervalued based on an intrinsic value of $39.82.