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Firm A trades at $53/share with FY1 earnings estimated at $4.25/share. Its potential payout rate is approximately 65% and it has a required rate of

Firm A trades at $53/share with FY1 earnings estimated at $4.25/share. Its potential payout rate is approximately 65% and it has a required rate of return of 7.5% with a growth rate of 2%. You hold 100 shares of Firm A. Based on this information, should you buy additional shares or sell the shares that you own?

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A.$51.95; sell the shares

B.$50.23; buy more shares

C.$51.95; buy more shares

D.$50.23; sell the shares

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