Answer:
the stock is undervalued
Explanation:
the constant-growth dividend discount model = dividend / required rate of return - growth rate
3.5 / 0.14 - 0.06 = $43.75
If the price of the stock is less than the one calculated, it means that the price is less than its intrinsic value. This means that the stock is undervalued. If otherwise, the stock is overvalued