1. Kendall Consulting Company is currently selling for $35, paying $1.80 in dividends, and investors expect dividends to grow at a constant rate of 8 percent a year. (2 points)
   • A. If an investor requires a rate of return of 14 percent for a stock with the riskiness of Kendall Company, is it a good buy for this investor?
   • B. What is the maximum an investor with a 14 percent required return should pay for Kendall Company? What is the maximum if the required return is 13 percent?