Suppose you have some extra money to invest for 1 year. After a year, you will need to sell your investment to pay tuition. After listening to Bloomberg, you decide that you want to buy Intel Corp. stock. You call your broker and find that Intel is currently selling for $ 50.77 per share and pays $ 0.14 per year in dividends. The analyst on Bloomberg predicts that the stock will be selling for $ 61.00in 1 year. Assume that you would be satisfied to earn 11.7 %on the stock. Should you buy this stock?The price per share is?(Round to the nearest cent.)

Should you buy this stock?.(Select all the choices that apply.)

A.

Based on your analysis, you find that the stock is worth more that what the stock is currently available for. Therefore, you would choose to buy it.

B.

Based on your analysis, you find that the stock is worth more that what the stock is currently available for. Therefore, you would choose not to buy it.

C.

You may wonder why the stock is selling for less than what it is worth. It could be that other investors place a different risk on the future cash flows or they are more pessimistic about future cash flows than you.

D.

You may wonder why the stock is selling for more than what it is worth. It could be that other investors place a different risk on the future cash flows or they are more pessimistic about future cash flows than you.