Each of two stocks, A and B, are expected to pay a dividend of 5 in the upcoming year. The expected growth rate of dividends is 10% for both stocks. You require a rate of return of 11% on stock A and a return of 20% on stock B. The intrinsic value of stock A:

Select one:

a. will be less than the intrinsic value of stock B

b. cannot be calculated without knowing the beta coefficient

c. cannot be calculated without knowing the market rate of return

d. will be the same as the intrinsic value of stock B

e. will be greater than the intrinsic value of stock B