Doc Inc. just paid an annual dividend of $2.00 last week and is currently selling for $25 per share. Its dividends are expected to increase by 6% annually. Based on the riskiness of Doc Incs stock, your required rate of return is 16%. What should be your trading strategy on this stock?

a. Sell, the stock is worth $21.20 per share.

b. Buy, the stock is worth $21.20 per share.

c. Sell, the stock is worth $26.50 per share.

d. Buy, the stock is worth $26.50 per share.

e. Nothing, the stock is fairly priced.