What is the most harley should be willing to pay

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Reference no: EM13286524

The Anderson Pipe Co. just paid an annual dividend of $3.75 and is expected to grow at 8% for the forseeable 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 on here? What should Harley do with this result?

Reference no: EM13286524

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