The next expected dividend for Stock B is $3, and the current price of the stock is $18. Its earnings, dividends, and price can be expected to grow at a constant rate of 5 percent per year. The risk free rate is 4%, the market risk premium is 7%, and the stock's beta is 3.2. Based on the given information, which of the following statements is correct?

a. An investor should buy this stock because its expected rate of return is 22.54%, and its required rate of return is 18.24%.

b. An investor should buy this stock because its expected rate of return is 26.40%, and its required rate of return is 21.67%.

c. An investor should not buy this stock because its expected rate of return is 21.67%, and its required rate of return is 26.40%.

d. An investor should not buy this stock because its expected rate of return is only 18.24%, and its required rate of return is 22.54%.