You wish to earn 10% on each of two stocks, A and B. Each of the stocks is expected to pay a dividend of $2 per share in the upcoming year. The expected growth rate of dividend is 6% for stock A and 5% for stock B. According to the constant growth dividend discount model, the intrinsic (fair) value of stock A will be

1. higher than that of stock B.
2. the same as that of stock B.
3. lower than that of stock B.
4. fluctuating more than that of stock B.
5. fluctuating less than that of stock B.