Quiz: Chapter 8 Quiz Submit Quiz This Question: 1 pt 2 of 10 This Quiz: 10 pts possible Danny is considering a stock purchase. The stock pays constant annual dividends of $2.73 per share and is currently trading at $28.02. Danny's required rate of return for this stock is 13.8%. Should he buy this stock? The intrinsic value of the stock that Danny is considering is(Round to the nearest cent.) Should he buy this stock? (Select the best answer below.) O A. Danny should not buy the stock because it is overpriced based on his valuation (it sells for more than the maximum he should pay). If he buys the stock, he s maximum required rate of return of 13.8%. B. Danny should buy the stock because it is underpriced based on his valuation (it sells for less than the minimum he should pay). If he buys the stock, he would C. Danny should not buy the stock because it s overpriced based on his valuation t sells or more han he max um e should pay f he buys the stock O D. Danny should buy the stock because it is underpriced based on his valuation (it sells for more than the minimum he should pay). If he buys the stock, he would not eam his minimum required rate of return of 13.8% would not earn his minimum required rate of return of 13.8%. earn more than his minimum required rate of return of 13.8% he Click to select your answer(s)