On a certain date the following represents the stock price for X$2$X$2$ Corporation.

$52$ Week High $$54\mathrm{.}50,52$ Week Low $$32\mathrm{.}75,$ Dividends paid just yesterday $$3\mathrm{.}20,$ yesterday$$s closing price $$48\mathrm{.}00$

According to the Value Line Investment Research, the growth rate in dividends for R$2$D$2$ Corporation is expected to be $23$ percent per year for the next $7$ years, followed by sustained growth of $5$ percent per year forever.

Suppose that R$2$D$2$ meets this anticipated dividend growth as cited above, and an investor wants $12\%$ return on the stock, Is the stock priced correctly?

Use the answer obtained from the model discussed in the class to rationalize your discussion.

What other factors could affect your answer?