The first drop down menu options are: Greater than, equal to, less than

2nd drop down menu: The selling price is too low, The selling price is too high, The stock is correctly priced.

Suppose the risk-free rate of return is 3.5 percent and the market risk premium is 6 percent. Stock U, which has a beta coefficient equal to 1.5, is currently selling for $35 per share. The company is expected to grow at a 4 percent rate forever, and the most recent dividend paid to stockholders was $2.25 per share. Is Stock U correctly priced? Explain. Do not round intermediate calculations. Round your answers to one decimal place. The required rate of return, that is %, is -Select- v the expected rate of return, that is %, which means that -Select