An analyst gathers the following information about a company's common stock:

• Most recent annual dividend: $2.00
• Expected annual dividend growth rate for next 3 years: 20%
• Expected dividend growth rate after 3 years: 6%
• Current share price: $31.00

The analyst considers a security trading within a band of +/- 10% of her estimate of intrinsic value to be fairly valued. If the required return is 17%, the common stock is: