On a Certain Date, Harvey Norman Has a Share Price

On a certain date, Harvey Norman has a share price of $37.50, pays a dividend of $0.64, and has a? equity cost of capital of 8%. An investor expects the dividend rate to increase by 6% per year in perpetuity. He then sells all Harvey Norman shares that he owns. Given Harvey Norman's share price, was this a reasonable action?

A) No, since the constant dividend growth rate gives a share price estimate of $37.50.
B) Yes, since the constant dividend growth rate gives a share price estimate greater than $37.50.
C) No, since the constant dividend growth rate gives a share price estimate greater than $37.50.
D) No, since the difference between his calculated share price and the actual share price most likely indicates that his estimate of dividend growth rate was incorrect.