Two stocks both trade for $22 per share. Stock A pays a constant dividend of $1 per year and is expected to have no growth in dividends. Stock B pays an annual dividend of $0.50 per share but also has $12/share in present value of growth opportunities. I the appropriate discount rate on Stock A is 5% and Stock B is 8%, which of these stocks (if either) is the MOST undervalued?

a) Stock B

b) Both are overvalued

c) Stock A

d) equally undervalued