On a Certain Date,Hasbro Has a Stock Price of $37

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

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