A firm's earnings per share increased from $7 to $9, its dividends per share increased from $2.80 to $3.60, and its share price increase from $98 to $135. Given this information, it follows that

Select one:

a. the required rate of return decreased.

b. the firm increased its number of common shares outstanding.

c. the company had a decrease in its dividend payout ratio.

d. the stock experienced an increase in its P/E ratio.