An investor with a required rate of return of 12.5% is looking at a stock that currently pays a $3.75 dividend per share, has a dividend growth rate of 6%, and is selling in the market for $60.00 per share. What would you recommend?

a. Buy; it meets the buyer’s return requirements and is underpriced.

b. Buy; it does not meet the buyer’s return requirements, but it is underpriced.

c. Do not buy; it does not meet the buyer’s return requirements and is overpriced.

d. Do not buy; it meets the buyer’s return requirements, but is overpriced.