Al Gavin, age 37, wants to add to his common stock portfolio. He wants long-term capital appreciation and requires a 14% rate of return on stock investments. He is considering the purchase of one of these two stocks: Stock 1 Dividends are currently $1.20 annually and are expected to increase 10% annually; market price = $38 Stock 2 Dividends are currently $1.00 annually and are expected to increase 11% annually; market price = $30 Which stock would be most appropriate for Al to purchase at this time, and why? A) Stock 2, because the return on investment is greater than Al's required rate of return B) Stock 1, because the stock is undervalued C) Stock 1, because the return on investment is greater than Al's required rate of return D) Stock 2, because the stock is overvalued