If the risk-free rate of return is 5 percent and the market risk premium is 7 percent, the most appropriate conclusions about the value of the common stocks of Easy Company and Bravo Enterprises, respectively, are:
Easy Company common stock 　　Bravo Enterprises common stock

A.Undervalued　　　　　　　　Undervalued

B.Overvalued　　　　　　　　Overvalued

C.Overvalued　　　　　　　　Undervalued