Suppose the risk-free rate of return is 4.5 percent and the market risk premium is 7 percent. Stock U, which has a beta coefficient equal to 0.7, is currently selling for $28 per share. The company is...

Suppose the risk-free rate of return is 4.5 percent and themarket risk premium is 7 percent. Stock U, which has a beta coefficient equal to 0.7, is currently selling for $28 per share. The company is expected to grow at a 4 percent rate forever, and the most recent dividend paid to stockholders was $1.75 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
(greater than, lower than, or equal to)
the expected rate of return, that is _______  %, which means that
(the selling price is too low, the selling price is too high, or the stock is correctly priced).