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SBC has a trailing P/E of 14 and dividends will continue to grow at its...

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Finance

SBC has a trailing P/E of 14 and dividends will continue to grow at its current rate of 4.5% per year into the indefinite future. Given a current dividend and EPS of $0.7 and $2.00 per share. Required return on equity is 8% determine whether the share is:

EPS: $0.70

Price per share: $2.00

ROE: 8%

Is the stock overvalued, undervalued or fairly priced? Please include an equation to use. Many thanks!

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