Wallace Industries paid a dividend of $1.50 on its common stock last year, which is expected to grow to $1.65 this year. The required rate of return is 16%, and it sells for $25 in the market. What is 1) the intrinsic value and 2) your expected rate of return if you buy it at the market price?

A. $25.5, 15.5%

B. $27.5, 15.5%

C. $25.5, 16.6%

D. $27.5, 16.6%