Alto Stock Pays an Annual Dividend of $1

Multiple Choice

Alto stock pays an annual dividend of $1.10 a share and has done so for the past 6 years.No changes in the dividend amount are expected.The relevant market rate of return is 7.8 percent.Given this,one share of this stock

A) is basically worthless as it offers no growth potential.
B) is valued as a nonconstant growth stock.
C) is valued as a perpetuity.
D) is valued as a differential growth stock.
E) has a current market value of $1.10.