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Star Solutions, Inc. paid a dividend last year of $3.55, which is expected to grow at a constant rate of 6%. Star Solutions has a beta of 1.5 and their stock is currently selling for $51.66. If the market interest rate is 11% and the risk-free rate is 3%, would you purchase Star Solutions' stock?

a. No, because it is overvalued $4.76 c. No, because it is overvalued $9.85

b. Yes, because it is undervalued $4.76 d. Yes, because it is undervalued $9.85

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