Expected to grow for the foreseeable future

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Reference no: EM131074563

The Anderson Pipe Co. just paid an annual dividend of $3.75 and is expected to grow at 8% for the foreseeable future. Harley Bevins generally demands a return of 9% when he invests in companies similar to Anderson. a. What is the most Harley should be willing to pay for a share of Anderson? b. Is your answer reasonable? What’s going here? What should Harley do with this result?

Reference no: EM131074563

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Expected to grow for the foreseeable future : The Anderson Pipe Co. just paid an annual dividend of $3.75 and is expected to grow at 8% for the foreseeable future. Harley Bevins generally demands a return of 9% when he invests in companies similar to Anderson. What is the most Harley should be w..

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