The anderson pipe co just paid an annual dividend of 375


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?

 

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: The anderson pipe co just paid an annual dividend of 375
Reference No:- TGS0625227

Expected delivery within 24 Hours