The HiTop Company is expected to pay a dividend of $1.50 in three years. The current stock price is $22 per share. You believe that the dividends of HiTop will grow at a rate of 5% per year thereafter forever. If the required rate of return for HiTop is 11.25%, then Select one

A)You should buy the stock because you believe that the value of the stock will rise to $24

B) You should buy tho stock because you believe that the value of the stock will fall to $19.39 C) You should not buy the stock because you believe that the value of the stock will rise to $24 D) 5% perpetual growth is very good and therefore you should buy the stock E) You should not buy the stock because you believe that the value of the stock will fall to $19.39