A company has a current policy of reinvesting 50% of their earnings back into the company and pays the other 50% of earnings out as dividends. The present value of growth opportunities is $10. Which of the following is correct?

A. The stock is worth $10 regardless of how much the company pays out in dividends.

B. The stock would be worth $10 per share more if the company instead paid all their earnings out as dividends. The company should change their dividend policy.

C. the stock is worth $10 per share more under the current policy compared to if the company instead paid all their earnings out as dividends. The company should keep its current dividend policy.