A firm's earnings per share increased from $10 to $12. The firm's dividends increased from $4.00 to 4.80 per share and the share price increased from $80 to $90. Given this information, it follows that ________.

Select one:

A. The stock experienced a drop in the price-to-earnings ratio.

B. The firm had a decrease in dividend payout ratio.

C. The firm increased the number of shares outstanding.

D. The required rate of return decreased.